Reprint
as at 8 August 2014

Coat of Arms of New Zealand

Local Government Act 2002

Public Act2002 No 84
Date of assent24 December 2002
Commencementsee section 2

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Department of Internal Affairs.


Contents

1 Title

2 Commencement

Part 1
Preliminary provisions

3 Purpose

4 Treaty of Waitangi

5 Interpretation

6 Meaning of council-controlled organisation and council organisation

7 Exempted organisations

8 Act binds the Crown

8A Provisions affecting application of amendments to this Act

Part 2
Purpose of local government, and role and powers of local authorities

9 Outline of Part

Subpart 1Purpose of local government

10 Purpose of local government

Subpart 2Role of local authorities and related matters

11 Role of local authority

11A Core services to be considered in performing role

12 Status and powers

13 Performance of functions under other enactments

14 Principles relating to local authorities

Subpart 3Co-ordination of responsibilities of local authorities

15 Triennial agreements

16 Significant new activities proposed by regional council

17 Transfer of responsibilities

17A Delivery of services

Subpart 4Minister and Secretary

18 Responsibilities, powers, and duties of Minister

19 Secretary

Part 3
Structure and reorganisation of local government

20 Outline of Part

Subpart 1Structure of local government

21 Local authorities

22 Minister is territorial authority in certain cases

23 Description of local government

Subpart 2Reorganisation of local authorities

24AA Purpose of local government reorganisation

24 Scope of local government reorganisation

24A Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation

25 Order in Council to give effect to final proposals and reorganisation schemes

26 Power to amend reorganisation schemes

26A Duties of local authorities in relation to local government reorganisation

27 Application to be called city council or district council

27A Change of name of unitary authorities

27B Orders in Council to be published in Gazette

Subpart 3Local Government Commission

28 Local Government Commission

29 Commission is body corporate with full powers

30 Functions and powers of Commission

31 Report to Minister on matters relating to local government

31A Minister's expectations of Commission in relation to local government reorganisation

32 Review of operation of Act and Local Electoral Act 2001

33 Membership of Commission

34 Commission is Commission of Inquiry

35 Evidence before Commission

36 Further provisions relating to Commission and its proceedings

37 Appeals against decisions of Commission

Part 4
Governance and management of local authorities and community boards

38 Outline of Part

Subpart 1Local authorities

Governance and management

39 Governance principles

40 Local governance statements

Governing bodies and chief executives

41 Governing bodies

41A Role and powers of mayors

42 Chief executive

Other governance matters

43 Certain members indemnified

44 Report by Auditor-General on loss incurred by local authority

45 Local authority to respond to Auditor-General

46 Members of local authority liable for loss

47 Members may be required to pay costs of proceeding in certain cases

48 Further provisions of Schedule 7

Subpart 1ALocal boards

48A Application

48B Interpretation

48C Purpose of local boards

48D Unitary authority decision making shared between governing body and local boards

48E Membership of local boards

48F Indemnification and liability of local board members

48G Status of local boards

48H Functions, duties, and powers of local boards

Decision making

48I General scheme

48J Decision-making responsibilities of governing body

48K Decision-making responsibilities of local boards

48L Principles for allocation of decision-making responsibilities of unitary authority

Local boards funding policy

48M Local boards funding policy

Local board plans and agreements

48N Local board plans

48O Local board agreements

48P Consultation required on proposed content of local board agreement

48Q Application of Schedule 7 to local boards and their members

Disputes between local boards and governing body

48R Disputes about allocation of decision-making responsibilities or proposed bylaws

48S Local Government Commission to determine disputes

Subpart 2Community boards

49 Establishment of community boards

50 Membership of community boards

51 Status of community boards

52 Role of community boards

53 Powers of community boards

54 Application of other provisions to community boards

Part 5
Council-controlled organisations and council organisations

55 Outline of Part

Establishment

56 Consultation required before council-controlled organisation established

Directors

57 Appointment of directors

58 Role of directors of council-controlled organisations

59 Principal objective of council-controlled organisation

60 Decisions relating to operation of council-controlled organisations

61 Activities undertaken on behalf of local authorities

62 Prohibition on guarantees, etc

63 Restriction on lending to council-controlled trading organisation

Statements of intent

64 Statements of intent for council-controlled organisations

Monitoring and reporting

65 Performance monitoring

66 Half-yearly report

67 Annual report

68 Content of reports on operations of council-controlled organisations

69 Financial statements and auditor's report

70 Auditor-General is auditor of council-controlled organisations

71 Protection from disclosure of sensitive information

71A Application of Part to listed companies

72 Application of Act to related companies

Transfer of undertakings

73 Transfer of undertakings to council-controlled organisations

Application of Local Government Official Information and Meetings Act 1987 and Ombudsmen Act 1975 to council-controlled organisations

74 Official information

Part 6
Planning, decision-making, and accountability

75 Outline of Part

Subpart 1Planning and decision-making

Significance and engagement policy

76AA Significance and engagement policy

Decision-making

76 Decision-making

77 Requirements in relation to decisions

78 Community views in relation to decisions

79 Compliance with procedures in relation to decisions

80 Identification of inconsistent decisions

81 Contributions to decision-making processes by Māori

Consultation

82 Principles of consultation

82A Information requirements for consultation required under this Act

83 Special consultative procedure

83AA Summary of information

83A Combined or concurrent consultation

84 Special consultative procedure in relation to long-term plan [Repealed]

85 Use of special consultative procedure in relation to annual plan [Repealed]

86 Use of special consultative procedure in relation to making, amending, or revoking bylaws

87 Other use of special consultative procedure

88 Use of special consultative procedure in relation to change of mode of delivery of significant activity [Repealed]

89 Summary of information [Repealed]

90 Policy on significance [Repealed]

Community outcomes

[Repealed]

91 Process for identifying community outcomes [Repealed]

92 Obligation to report against community outcomes [Repealed]

Planning

93 Long-term plan

93A Use of special consultative procedure in relation to long-term plan

93B Purpose of consultation document for long-term plan

93C Content of consultation document for adoption of long-term plan

93D Content of consultation document for amendment of long-term plan

93E Additional content of consultation document for adoption or amendment of long-term plan where section 97 applies to proposed decision

93F Form and manner of presentation of consultation document

93G Information to be adopted by local authority in relation to long-term plan and consultation document

94 Audit of long-term plan

95 Annual plan

95A Purpose and content of consultation document for annual plan

95B Combined or concurrent consultation on long-term plan and annual plan

96 Effect of resolution adopting long-term plan or annual plan

97 Certain decisions to be taken only if provided for in long-term plan

Subpart 2Reporting

98 Annual report

99 Audit of information in annual report and summary

99A Pre-election report

Subpart 3Financial management

100 Balanced budget requirement

101 Financial management

101A Financial strategy

101B Infrastructure strategy

102 Funding and financial policies

103 Revenue and financing policy

104 Liability management policy

105 Investment policy

106 Policy on development contributions or financial contributions

107 Policy on partnerships with private sector [Repealed]

108 Policy on remission and postponement of rates on Māori freehold land

109 Rates remission policy

110 Rates postponement policy

111 Information to be prepared in accordance with generally accepted accounting practice

Subpart 4Borrowing and security

112 Interpretation

Borrowing

113 Prohibition on borrowing in foreign currency

114 Constraints on receiver

115 Rates as security

116 Register of charges maintained by local authority

Protected transactions

117 Protected transactions

118 Certificate of compliance

119 Good faith in relation to protected transactions

120 Saving provision in respect of power of court

Miscellaneous provisions

121 The Crown not liable for debts

122 Prospectuses and loan documents to contain statement that the Crown does not guarantee securities or loan

Part 7
Specific obligations and restrictions on local authorities and other persons

123 Outline of Part

Subpart 1Specific obligations to make assessments of water and sanitary services

124 Interpretation

125 Requirement to assess water and other sanitary services

126 Purpose of assessments

127 Information required in assessment of sanitary services [Repealed]

128 Process for making assessments [Repealed]

129 Extent of information in assessments [Repealed]

Subpart 2Obligations and restrictions relating to provision of water services

130 Obligation to maintain water services

Closure or transfer of small water services

131 Power to close down or transfer small water services

132 Eligibility to vote in referendum

133 Responsibility for conduct of referendum

134 Criteria for closure of water service

135 Criteria for transfer of water service

Contracting out of water services

136 Contracts relating to provision of water services

Joint local government arrangements and joint arrangements with other entities

137 Joint local government arrangements and joint arrangements with other entities

Subpart 3Restrictions on disposal of parks, reserves, and endowment properties

Parks and reserves

138 Restriction on disposal of parks (by sale or otherwise)

139 Protection of regional parks

139A Further provision in relation to regional parks

Endowment property

140 Restrictions on disposal of endowment property

141 Conditions applying to sale or exchange of endowment property

Subpart 4Public libraries

142 Obligation to provide free membership of libraries

Part 8
Regulatory, enforcement, and coercive powers of local authorities

Subpart 1Powers of local authorities to make bylaws

143 Outline of Part

144 Bylaws Act 1910

Powers of territorial authorities to make bylaws

145 General bylaw-making power for territorial authorities

146 Specific bylaw-making powers of territorial authorities

147 Power to make bylaws for alcohol control purposes

147A Criteria for making or continuing bylaws

147B Criteria for making resolutions relating to bylaws

147C Signage for areas in which bylaws for alcohol control purposes apply

148 Special requirements for bylaws relating to trade wastes

Power of regional councils to make bylaws

149 Power of regional councils to make bylaws

Power of local authorities to prescribe fees

150 Fees may be prescribed by bylaw

150A Costs of development contribution objections

Bylaws proposed by local boards

150B Local boards may propose bylaw

150C Local board must consult on proposed bylaw

150D Local board may propose amendment to bylaw

150E Local board may propose revocation of bylaw

150F Joint bylaw proposals

General provisions applying to bylaws made by a local authority

151 General provisions applying to bylaws made under this Act

152 Effect of Building Act 2004 on bylaws

The Crown bound by certain bylaws

153 The Crown bound by certain bylaws

154 Power of exemption

Procedure for making bylaws

155 Determination whether bylaw made under this Act is appropriate

156 Consultation requirements when making, amending, or revoking bylaws made under this Act

157 Public notice of bylaws and availability of copies

Review of bylaws made under this Act or the Local Government Act 1974

158 Review of bylaws made under this Act or the Local Government Act 1974

159 Further reviews of bylaws every 10 years

160 Procedure for and nature of review

160A Bylaw not reviewed within specified time frame revoked

Transfer of bylaw-making power

161 Transfer of bylaw-making power

Subpart 2Enforcement powers

Injunctions

162 Injunctions restraining commission of offences and breaches of bylaws

Removal of works

163 Removal of works in breach of bylaws

Seizure of property

164 Seizure of property not on private land

165 Seizure of property from private land

166 Conditions for exercise of warrant to seize property on private land

167 Return of property seized and impounded

168 Power to dispose of property seized and impounded

Powers of arrest, search, and seizure in relation to liquor

169 Powers of arrest, search, and seizure in relation to alcohol bans

Matters of proof in relation to bylaws prohibiting alcohol in public place

169A Proving substance is alcohol in relation to alleged breach of alcohol ban

170 Conditions relating to power of search

Powers of entry

171 General power of entry

172 Power of entry for enforcement purposes

173 Power of entry in cases of emergency

174 Authority to act

Recovery for damage

175 Power to recover for damage by wilful or negligent behaviour

176 Costs of remedying damage arising from breach of bylaw

Administration of enforcement functions

177 Appointment of enforcement officer

Powers of enforcement officers

178 Enforcement officers may require certain information

Administration of enforcement may be contracted out

179 Contracting out administration of enforcement

Enforcement of regional council bylaws

180 Enforcement and administration of regional council bylaws

Subpart 3Powers in relation to private land

Construction of works

181 Construction of works on private land

Powers of entry

182 Power of entry to check utility services

Powers relating to owners and occupiers of land

183 Removal of fire hazards

184 Rights and obligations if notice given under section 183(1)

Default by owner or occupier

185 Occupier may act if owner of premises makes default

186 Local authority may execute works if owner or occupier defaults

Recovery of costs

187 Recovery of cost of works by local authority

188 Liability for payments in respect of private land

Compulsory acquisition of land

189 Power to acquire land

190 Compensation payable by local authority for land taken or injuriously affected

Nuisance

191 Local authority not authorised to create nuisance

Subpart 4Powers in relation to water services and trade wastes

Water supply

192 Wastage of water

193 Power to restrict water supply

194 Power to stop water services [Repealed]

Discharge of sewage and trade wastes

195 Discharge of sewage

196 Discharge of trade wastes

Subpart 5Development contributions

197AA Purpose of development contributions

197AB Development contributions principles

197 Interpretation

Contributions may be required by territorial authorities

198 Power to require contributions for developments

198A Restrictions on power to require contributions for reserves

199 Basis on which development contributions may be required

199A Right to reconsideration of requirement for development contribution

199B Territorial authority to notify outcome of reconsideration

199C Right to object to assessed amount of development contribution

199D Scope of development contribution objections

199E Procedure for development contribution objections

199F Appointment and register of development contributions commissioners

199G Removal of development contributions commissioners

199H Who may decide development contribution objections

199I Development contribution objection hearings

199J Consideration of development contribution objection

199K Additional powers of development contributions commissioners

199L Liability of development contributions commissioners

199M Residual powers of territorial authority relating to development contribution objection decision

199N Objector’s right to apply for judicial review unaffected

199O Territorial authority to provide administrative support for development contributions commissioners

199P Interim effect of development contribution objection

Conditions relevant to requirement for contributions

200 Limitations applying to requirement for development contribution

Development contributions policy

201 Contents of development contributions policy

201A Schedule of assets for which development contributions will be used

202 Contents of section 201 schedule

202A Reconsideration process to be in development contributions policy

203 Maximum development contributions not to be exceeded

Use of development contributions

204 Use of development contributions by territorial authority

205 Use of development contributions for reserves

206 Alternative uses of development contributions for reserves

207 Power to use money collected and held under Local Government Act 1974 or Resource Management Act 1991

Development agreements

207A Request to enter development agreement

207B Response to request for development agreement

207C Content of development agreement

207D Effect of development agreement

207E Restrictions on use of development agreement

207F Amendment or termination of development agreement

Powers to recover unpaid development contributions

208 Powers of territorial authority if development contributions not paid or made

Refund of development contributions

209 Refund of money and return of land if development does not proceed

210 Refund of money or return of land if not applied to specified reserve purposes

211 Application of other Acts

Subpart 6Removal orders

212 Interpretation

Application of rules of court

213 Application of District Courts Rules to removal orders

214 Scope of rules made under section 213

Application for removal order

215 Application for removal order

Making of removal orders

216 Circumstances when court may make removal order

Objection to making of removal order

217 Right of objection

218 Consideration of objections

Right of appeal

219 Appeal to High Court final

Compliance with removal order

220 Compliance with removal order

221 Limits to power of entry to enforce compliance

Application of certain other Acts

222 Provisions of Resource Management Act 1991 and Building Act 2004 continue to apply

223 Relationship with Fencing Act 1978

Part 9
Offences, penalties, infringement offences, and legal proceedings

Subpart 1Offences

Offences relating to water

224 Offence relating to water wastage

225 Offences relating to waterworks

226 Liability for cost of damage

Offences relating to water meters

227 Offences relating to water meters

Offences relating to water races and private drains

228 Offences relating to water races

Offence relating to obstruction of enforcement officers and others

229 Obstruction of enforcement officers or agents of local authority

Offences by occupiers or owners

230 Offences by occupiers

231 Offences in relation to notices sent to occupiers or owners

Offences relating to property damage

232 Damage to local authority works or property

Miscellaneous offences

233 Offence relating to advertising

234 Unauthorised use of coat of arms

Offences committed by members and officers of local authorities

235 Offences by members of local authorities and local boards

236 Penalty for acting without warrant

Offences committed by members and officers of Remuneration Authority

237 Offence by member or officer of Remuneration Authority

Offences against Act

238 Offence of failing to comply with Act

Offences against bylaws

239 Offences in respect of breaches of bylaws (other than alcohol bans)

239A Breaches of alcohol bans

Defences

240 Defence to offences under this Act

Time for filing charging document

241 Time for filing charging document

Subpart 2Penalties

242 Penalties for offences

Subpart 3Infringement offences

243 Interpretation

244 Proceedings for infringement offences

245 Issue of infringement notices

245A Constables may require certain information

246 Entitlement to infringement fees

Subpart 4Legal proceedings

Procedure

247 Proceedings in District Court

Judges not disqualified

248 Judges not disqualified for being ratepayers

Representation

249 Representation of local authority in proceedings

Service

250 Service of legal proceedings on local authority

Evidence

251 Evidence of ownership, vesting, or control

Recovery of debts

252 Recovery of debts

Part 10
Powers of Minister to act in relation to local authorities

253 Outline of Part

254 How this Part works

255 Application of this Part

256 Interpretation

Subpart 1Ministerial powers of assistance and intervention

Minister may require information from local authority

257 Minister may require information

Minister may appoint Crown Review Team

258 Minister may appoint Crown Review Team

258A How Crown Review Team appointed

Minister may appoint Crown Observer

258B Minister may appoint Crown Observer

258C How Crown Observer appointed

Minister may appoint Crown Manager

258D Minister may appoint Crown Manager

258E How Crown Manager appointed

Minister may appoint Commission

258F Minister may appoint Commission

258G How Commission appointed

258H Application of this and other enactments during Commission's term of appointment

258I Minister may postpone general election when appointing Commission

258J Timing of election following postponed election

258K Local authority members remain in office but must not act during term of Commission

258L Extraordinary vacancy when Commission appointed or during term of Commission

Minister may call general election

258M Minister may call general election

Subpart 2General provisions applying to Ministerial powers conferred under subpart 1

258N Minister may consult any person

258O Minister must publish list in Gazette

258P Minister must have regard to published list

258Q Notice to local authority of proposed appointment of Ministerial body

258R Notice to local authority of proposed general election

258S Notification of appointment of Ministerial body

258T Notification of change of membership of Ministerial body

258U Final report of Ministerial body

258V Remuneration and expenses of Ministerial appointees

258W Recovery of expenses from local authority

258X Minister may terminate Ministerial body or Ministerial appointee

258Y Protection from liability for Ministerial appointees

258Z Disclosure of information held by local authority

258ZA Decisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise

Part 11
Regulations, other Orders in Council, and rules

Regulations

259 Regulations

259A Levy to fund rules for performance measures

259B Power to refund levy

259C Auditor-General must report on disclosures made under certain regulations

259D Regulations may incorporate financial reporting standards by reference

259E Effect of amendments to, or replacement of, standards incorporated by reference in regulations

259F Proof of standards incorporated by reference

259G Effect of expiry or revocation of standards incorporated by reference

259H Access to standards incorporated by reference

259I Application of Legislation Act 2012 to standards incorporated by reference

259J Application of Regulations (Disallowance) Act 1989 to standards incorporated by reference [Repealed]

Other Orders in Council

260 Amendment of Schedule 2 by Order in Council

261 Circumstances when Order in Council may extend time or validate action taken

Rules for performance measures

261A Purpose of rules specifying performance measures

261B Secretary must make rules specifying performance measures

261C Status of rules

Incorporation by reference

261D Incorporation of documents by reference in rules

261E Proof of material incorporated by reference

261F Effect of change to, or expiry of, material incorporated by reference

261G Consultation on proposal to incorporate material by reference

261H Access to material incorporated by reference

Part 12
Consequential amendments, repeals, revocations, transitional provisions, and savings

Consequential amendments, repeals, and revocations

262 Consequential amendments

263 Water services

264 Amendment to Personal Property Securities Act 1999

265 New Schedule added to Receiverships Act 1993

266 Repeals

267 Repeal of enactments relating to special consultative procedure

268 Repeal of Local Government (Prohibition of Liquor in Public Places) Amendment Act 2001

269 Repeal of spent local Acts

270 Repeal of provisions relating to regional parks of Wellington Regional Council

271 Lake Taupo Regulations 1976

272 Revocations

Transitional provisions

273 First triennial agreement

274 First local governance statement

275 First policy on appointment of directors

276 First statement of intent and report and accounts of existing local authority trading enterprises

277 First statement of intent of other council-controlled organisations

278 First policy on significance

279 Long-term council community plan [Repealed]

280 Long-term plan for period beginning on 1 July 2006

281 Annual plan [Repealed]

282 Certain decisions to be taken only if provided for in annual plan or special consultative procedure used [Repealed]

283 Annual reports

284 First annual plan

285 First assessment of water and sanitary services

286 Waste management plan

287 Special consultative procedure

288 Decision-making processes commenced before enactment [Repealed]

289 Special orders

289A Special orders on or after 1 July 2003

290 Development contributions

291 Reorganisation proposals

292 Existing charges

293 Bylaws

294 Standing orders

295 Communities and community boards

296 Chief executive

297 Members of Commission

298 Community trusts

299 Borrowing from sinking fund

300 Cancellation of part of loan in respect of which sinking fund is held

301 Consent required for release of sinking fund

302 Provisions relating to Public Trust and Board of Trustees of National Provident Fund

303 Public Bodies Leases Act 1969

304 Sale of land purchased for commercial or industrial purposes

305 Local Authorities (Employment Protection) Act 1963

306 Local Authorities Loans Act 1956

307 Existing proceedings

308 Existing causes of action

Savings

309 Saving

310 Saving in respect of bylaws of Transit New Zealand

311 Savings in respect of bylaws made in respect of government roads

312 Savings and validation in respect of remuneration, allowances, and expenses of elected members

313 Saving in respect of Infrastructure Auckland [Repealed]

314 Prohibition of vehicles and consumption or possession of intoxicating liquor in public place

Schedule 1AA
Application, savings, and transitional provisions relating to amendments to this Act made by the Local Government Act 2002 Amendment Act 2014

Schedule 1
Acts under which responsibilities, powers, and duties are conferred or imposed on Minister of Local Government and Secretary for Local Government

Schedule 2
Local authorities

Schedule 3
Reorganisation of local authorities

Schedule 4
Provisions relating to Local Government Commission and its proceedings

Schedule 5
Appeals against decisions of Local Government Commission

Schedule 6
Constitution of communities

Schedule 7
Local authorities, local boards, community boards, and their members

Schedule 8
Statements of intent

Schedule 9
Council-controlled organisations and transfer of undertakings

Schedule 10
Long-term plans, annual plans, and annual reports

Schedule 11
Matters relating to rates relief on Māori freehold land

Schedule 12
Conditions of constructing or undertaking works on private land without the owner's consent

Schedule 13
Methodology for calculating development contributions

Schedule 13A
Procedure relating to development contribution objections

Schedule 14
Procedure for making removal orders

Schedule 15
Powers of Minister

[Repealed]

Schedule 16
Consequential amendments

Schedule 17
New Schedule of Receiverships Act 1993

Schedule 18
Enactments repealed

Schedule 19
Local Acts repealed

Schedule 20
Orders in Council revoked


1 Title
  • This Act is the Local Government Act 2002.

2 Commencement

Part 1
Preliminary provisions

3 Purpose
  • The purpose of this Act is to provide for democratic and effective local government that recognises the diversity of New Zealand communities; and, to that end, this Act—

    • (a) states the purpose of local government; and

    • (b) provides a framework and powers for local authorities to decide which activities they undertake and the manner in which they will undertake them; and

    • (c) promotes the accountability of local authorities to their communities; and

    • (d) provides for local authorities to play a broad role in meeting the current and future needs of their communities for good-quality local infrastructure, local public services, and performance of regulatory functions.

    Section 3(d): replaced, on 5 December 2012, by section 4 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

4 Treaty of Waitangi
  • In order to recognise and respect the Crown's responsibility to take appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Māori to contribute to local government decision-making processes, Parts 2 and 6 provide principles and requirements for local authorities that are intended to facilitate participation by Māori in local authority decision-making processes.

5 Interpretation
  • (1) In this Act, unless the context otherwise requires,—

    activity means a good or service provided by, or on behalf of, a local authority or a council-controlled organisation; and includes—

    • (a) the provision of facilities and amenities; and

    • (b) the making of grants; and

    • (c) the performance of regulatory and other governmental functions

    affected,—

    • (a) in relation to a local authority, means a local authority whose district or region is or contains an affected area:

    • (b) in relation to a territorial authority, means a territorial authority whose district is or contains an affected area

    affected area has the same meaning as in clause 2 of Schedule 3

    annual plan means an annual plan adopted under section 95

    bylaw means a bylaw made by a local authority under any enactment

    capital project has the meaning given to it in section 5 of the Local Government (Rating) Act 2002

    capital value has the meaning set out in section 2 of the Rating Valuations Act 1998

    Commission,—

    • (a) other than in Part 10, means the Local Government Commission continued under section 28:

    committee includes, in relation to a local authority,—

    • (a) a committee comprising all the members of that local authority; and

    • (b) a standing committee or special committee appointed by that local authority; and

    • (c) a joint committee appointed under clause 30 of Schedule 7; and

    • (d) any subcommittee of a committee described in paragraph (a) or paragraph (b) or paragraph (c)

    community means, subject to subsection (2), a community constituted under Schedule 6

    community board means a community board established under section 49

    community facilities has the meaning set out in section 197(2)

    community outcomes means the outcomes that a local authority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions

    council-controlled organisation has the meaning set out in section 6

    council-controlled trading organisation has the meaning set out in section 6

    council organisation has the meaning set out in section 6

    development contribution has the meaning set out in section 197(2)

    development contribution policy has the meaning set out in section 197(2)

    district means the district of a territorial authority

    enforcement officer means a person appointed by a local authority to exercise the powers of an enforcement officer in relation to offences against, and infringement offences under, this Act, including enforcement of the bylaws of the local authority

    equity security has the meaning given to it in section 2 of the Securities Act 1978

    financial year means a period of 12 months ending on 30 June

    generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013

    good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, has the meaning given in section 10(2)

    governing body,—

    • (a) in the case of a regional council, means the body described in section 41(1); and

    • (b) in the case of a territorial authority, means the body described in section 41(2)

    group of activities means 1 or more related activities provided by, or on behalf of, a local authority or council-controlled organisation

    land value has the meaning set out in section 2 of the Rating Valuations Act 1998

    local authority means a regional council or territorial authority

    local board means—

    • (a) a local board established by Order in Council under section 25; or

    • (b) a local board established under section 10 of the Local Government (Auckland Council) Act 2009

    local board agreement means—

    • (b) an agreement specified in section 21 of the Local Government (Auckland Council) Act 2009

    local board area means—

    • (a) an area specified by Order in Council under section 25 as a local board area; or

    • (b) an area specified by Order in Council under section 35 of the Local Government (Auckland Council) Act 2009 as a local board area

    local board funding allocation means the total funds in respect of which a local board has decision-making discretion allocated in accordance with—

    • (a) the unitary authority's local boards funding policy adopted under section 48M; or

    • (b) the Auckland Council's local boards funding policy adopted under section 19 of the Local Government (Auckland Council) Act 2009

    local board plan means the plan that each local board is required to adopt under—

    • (b) section 20 of the Local Government (Auckland Council) Act 2009

    local government organisation has the meaning set out in section 124

    long-term plan means a long-term plan adopted under section 93

    lump sum contribution has the meaning given to it in section 5 of the Local Government (Rating) Act 2002

    mayor means the mayor of a territorial authority elected under the Local Electoral Act 2001

    member,—

    • (a) in relation to a community board, means a member appointed to that board or elected to that board under the Local Electoral Act 2001:

    • (b) in relation to the Commission, means a member of the Local Government Commission:

    • (c) in relation to a local authority, means a member of the governing body of the local authority elected under the Local Electoral Act 2001:

    • (ca) in relation to a local board, means a member appointed to that board or elected to that board under the Local Electoral Act 2001, including the chairperson:

    • (d) in relation to a regional council, means a member of the governing body of the regional council elected under the Local Electoral Act 2001, including the chairperson:

    • (e) in relation to a territorial authority, means a member of the governing body of the territorial authority elected under the Local Electoral Act 2001, including the mayor

    Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

    natural hazard has the meaning given to it in section 2(1) of the Resource Management Act 1991

    network infrastructure has the meaning set out in section 197(2)

    operating expenses and operating revenues have the same meaning as under generally accepted accounting practice

    public notice, in relation to a notice given by a local authority,—

    • (a) means a notice published in—

      • (i) 1 or more daily newspapers circulating in the region or district of the local authority; or

      • (ii) 1 or more other newspapers that have at least an equivalent circulation in that region or district to the daily newspapers circulating in that region or district; and

    • (b) includes any other public notice that the local authority thinks desirable in the circumstances

    publicly available, in relation to a document or other information, has the meaning set out in subsection (3)

    rating unit means a rating unit for the purposes of the Rating Valuations Act 1998

    region

    • (a) means the region of a regional council; and

    • (b) includes the district of a territorial authority, if the territorial authority is a unitary authority

    regional council means a regional council named in Part 1 of Schedule 2

    remuneration and employment policy means a policy adopted by a local authority under clause 36A of Schedule 7

    reserve fund means money set aside by a local authority for a specific purpose

    resource consent has the meaning set out in section 197(2)

    Secretary means the Secretary for Local Government

    significance, in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for,—

    • (a) the district or region:

    • (b) any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter:

    • (c) the capacity of the local authority to perform its role, and the financial and other costs of doing so

    significant, in relation to any issue, proposal, decision, or other matter, means that the issue, proposal, decision, or other matter has a high degree of significance

    special consultative procedure means the procedure set out in section 83

    statutory obligation means any responsibility, duty, or legal obligation conferred by or under any Act, and includes any powers associated with that responsibility, duty, or legal obligation

    strategic asset, in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority's capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes—

    • (a) any asset or group of assets listed in accordance with section 76AA(3) by the local authority; and

    • (b) any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and

    territorial authority means a city council or a district council named in Part 2 of Schedule 2

    unitary authority means a territorial authority that has the responsibilities, duties, and powers of a regional council conferred on it under—

    • (a) the provisions of any Act; or

    • (b) an Order in Council giving effect to a reorganisation scheme

    wastewater has the meaning given to wastewater services in section 124

    water race means the land occupied by a water channel (other than a main river)—

    • (a) constructed—

      • (i) by or under the authority of a local authority:

      • (ii) in, upon, or through land for the supply of water; and

    • (b) to be used—

      • (i) solely or principally for farming purposes; or

      • (ii) in the case of an existing water race, for any other purpose for which water from that water race may be used at the commencement of this section; and

    • (c) includes—

      • (i) a branch of a water race taken or made through land for the purpose of supplying water as referred to in paragraph (b); and

      • (ii) an alteration, extension, or widening of a water race or branch water race, whether done by the local authority or by any person with the approval of the local authority; and

      • (iii) a flood or other bank, or a dam, sluice, flume, bridge, gauge, meter, reservoir, or other waterworks relating to, or forming part of, a water race; and

      • (iv) buildings and machinery, pipes, and other materials on the land and within the limits of a water race or relating to, or used in connection with, a water race

    waterworks, in relation to the provision of water supply, includes—

    • (a) rivers, streams, lakes, waters, and underground waters, and rights relating to these; and

    • (b) land, watershed, catchment, and water collection areas; and

    • (c) if vested in a local government organisation, or acquired, constructed, or operated by, or under the control of, a local government organisation,—

      • (i) reservoirs, dams, bores, tanks, and pipes; and

      • (ii) buildings, machinery, and appliances

    working day means a day of the week other than—

    • (a) a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign's birthday, and Labour Day; and

    • (ab) if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and

    • (b) a day in the period commencing with 25 December in a year and ending with 2 January in the following year; and

    • (c) if 1 January falls on a Friday, the following Monday; and

    • (d) if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday.

    (2) The meaning given to the term community by subsection (1) does not apply in relation to—

    • (b) the definition of the term long-term plan; or

    • (c) any of the provisions of Parts 2 and 6; or

    • (e) any other provisions of this Act in respect of which the context otherwise requires.

    (3) If a local authority or a council-controlled organisation is required under this Act to make a document or other information publicly available, it must take reasonable steps to—

    • (a) ensure that the document or other information or a copy of the document or other information is accessible to the general public in a manner appropriate to the purpose of the document or other information, including, where practicable, on an Internet site maintained by or on behalf of the local authority; and

    • (b) publicise, in a manner appropriate to the purpose and significance of the document or other information, both the fact that the document or other information is available and the manner in which the document or other information may be accessed.

    Section 5(1) affected: replaced, on 8 August 2014, by section 4(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) affected area: inserted, on 5 December 2012, by section 5(9) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) bylaw: inserted, on 28 June 2006, by section 4(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 5(1) capital project: inserted, on 28 June 2006, by section 15(1) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).

    Section 5(1) capital value: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) Commission: replaced, on 5 December 2012, by section 5(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) community facilities: substituted, on 28 June 2006, by section 4(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 5(1) community facilities: amended, on 5 December 2012, by section 5(2) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) community infrastructure: repealed, on 8 August 2014, by section 4(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) community outcomes: replaced, on 5 December 2012, by section 5(4) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) development contribution: amended, on 5 December 2012, by section 5(5) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) development contribution policy: amended, on 5 December 2012, by section 5(6) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) equity security: inserted, on 27 November 2010, by section 4(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(1) generally accepted accounting practice: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

    Section 5(1) good-quality: inserted, on 5 December 2012, by section 5(9) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) governing body: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) land value: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) local board: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) local board agreement: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) local board area: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) local board funding allocation: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) local board plan: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) long-term council community plan: repealed, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(1) long-term plan: inserted, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(1) lump sum contribution: inserted, on 28 June 2006, by section 15(1) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).

    Section 5(1) member paragraph (ca): inserted, on 8 August 2014, by section 4(4) of the Local Government Act 2002 Amendment Act 2014 (2014 No  55).

    Section 5(1) natural hazard: inserted, on 27 November 2010, by section 4(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(1) network assets of Watercare Services Limited: repealed, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

    Section 5(1) network infrastructure: amended, on 5 December 2012, by section 5(7) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) publicly available: amended, on 8 August 2014, by section 4(5) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) rating unit: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) remuneration and employment policy: inserted, on 5 December 2012, by section 5(9) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) reorganisation proposal: repealed, on 5 December 2012, by section 5(10) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) reorganisation scheme: repealed, on 5 December 2012, by section 5(10) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) reserve fund: inserted, on 27 November 2010, by section 4(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(1) resource consent: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) significance paragraph (a): replaced, on 5 December 2012, by section 5(8) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 5(1) statutory obligation: inserted, on 8 August 2014, by section 4(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) strategic asset paragraph (a): amended, on 8 August 2014, by section 4(6) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 5(1) waterworks: substituted, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

    Section 5(1) working day paragraph (ab): inserted, on 1 January 2014, by section 8 of the Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 (2013 No 19).

    Section 5(2)(b): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 5(3): replaced, on 8 August 2014, by section 4(7) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

6 Meaning of council-controlled organisation and council organisation
  • (1) In this Act, unless the context otherwise requires,—

    council-controlled organisation means a council organisation that is—

    • (a) a company—

      • (i) in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—

        • (A) held by 1 or more local authorities; or

        • (B) controlled, directly or indirectly, by 1 or more local authorities; or

      • (ii) in which 1 or more local authorities have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or

    • (b) an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—

      • (i) control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the entity; or

      • (ii) the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the entity

    council-controlled trading organisation means a council-controlled organisation that operates a trading undertaking for the purpose of making a profit

    council organisation means—

    • (a) a company—

      • (i) in which equity securities carrying voting rights at a meeting of the shareholders of the company are—

        • (A) held by 1 or more local authorities; or

        • (B) controlled, directly or indirectly, by 1 or more local authorities; or

      • (ii) in which 1 or more local authorities have the right, directly or indirectly, to appoint 1 or more of the directors (however described) of the company; or

    • (b) an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—

      • (i) control, directly or indirectly, of 1 or more of the votes at any meeting of the members or controlling body of the entity; or

      • (ii) the right, directly or indirectly, to appoint 1 or more of the trustees, directors, or managers (however described) of the entity.

    (2) For the purposes of subsection (1), entity means any partnership, trust, arrangement for the sharing of profits, union of interest, co-operation, joint venture, or other similar arrangement; but does not include a company, or a committee or joint committee of a local authority.

    (3) If a council organisation is not a company, references in this Act, in relation to the council organisation, to—

    • (a) equity securities include any form of voting rights in that organisation; and

    • (b) the directors and the board include trustees, managers, or office holders (however described in that organisation); and

    • (c) shareholders include any partners, joint venture partners, members, or other persons holding equity securities in relation to that organisation; and

    • (d) the constitution include any rules or other documents constituting that organisation or governing its activities; and

    • (e) subsidiaries include any entity that would be a council-controlled organisation if the references to local authority or local authorities in subsection (1) read council-controlled organisation or council-controlled organisations.

    (4) The following entities are not council-controlled organisations:

    • (a) a body corporate that carries on an electricity business (whether or not that business is its principal or only business) or a trust that is constituted for purposes which include owning or controlling, directly or indirectly, all or part of an electricity company that carries on that business; or

    • (ca) a company in which a port company (within the meaning of the Port Companies Act 1988) holds or controls 50% of the shares; or

    • (d) [Repealed]

    • (e) New Zealand Local Government Association Incorporated; or

    • (f) New Zealand Local Government Insurance Corporation Limited and its subsidiaries; or

    • (g) [Repealed]

    • (h) a company or other organisation (as defined in subsection (2)) of which the New Zealand Local Government Association Incorporated has control directly or indirectly by whatever means; or

    • (i) an organisation exempted under section 7.

    (5) In this section, terms not defined in this Act, but defined in the Companies Act 1993, have the same meaning as in that Act.

    Compare: 1974 No 66 s 594B

    Section 6(1) council-controlled organisation paragraph (b): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council-controlled organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council-controlled organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council organisation paragraph (a)(ii): amended, on 7 July 2004, by section 3(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council organisation paragraph (b): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(1) council organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(2): amended, on 7 July 2004, by section 3(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(4)(a): substituted, on 1 November 2010, by section 166 of the Electricity Industry Act 2010 (2010 No 116).

    Section 6(4)(ca): inserted, on 7 July 2004, by section 3(5) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 6(4)(d): repealed, on 1 July 2004, by section 48(1)(b) of the Local Government (Auckland) Amendment Act 2004 (2004 No 57).

    Section 6(4)(g): repealed, on 1 July 2012, by section 113(2) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

7 Exempted organisations
  • (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt an organisation for the purposes of section 6(4)(i).

    (2) The Minister may make a recommendation only if—

    • (a) the organisation is subject to monitoring and reporting requirements under an enactment; and

    • (b) in the Minister's opinion, the organisation's accountability under that enactment is of a similar nature and effect to that required of a council-controlled organisation under this Act.

    (3) A local authority may, after having taken account of the matters specified in subsection (5), exempt a small organisation that is not a council-controlled trading organisation, for the purposes of section 6(4)(i).

    (4) An exemption must be granted by resolution of the local authority.

    (5) The matters are—

    • (a) the nature and scope of the activities provided by the organisation; and

    • (b) the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.

    (6) A local authority must review an exemption it has granted—

    • (a) within 3 years after it is granted; and

    • (b) after the first review, not more than 3 years following the last review under this section.

    (7) A local authority may, at any time, revoke an exemption it has granted.

    Section 7(1): amended, on 28 June 2006, by section 5(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 7(2): substituted, on 28 June 2006, by section 5(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 7(6)(b): replaced, on 8 August 2014, by section 5 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

8 Act binds the Crown
  • (1) Except as provided in subsections (2) and (3), this Act does not bind the Crown.

    (2) The following provisions of this Act bind the Crown:

    • (a) section 22 and subpart 4 of Part 2 (which relate to the powers of the Minister and of officials); and

    • (b) Part 3 and Schedules 4, 5, and 6 (which relate to the Commission, the reorganisation of local authorities, and the establishment of community boards); and

    • (c) Part 10 (which relates to the Minister's powers in relation to the governance of local authorities).

    (3) Subpart 1 of Part 8 binds the Crown to the extent set out in sections 153 and 154.

    (4) Except as provided in subsections (2) and (3), this Act, and the regulations and bylaws made under it, apply to the interest of any lessee, licensee, or other person claiming an interest in any property of the Crown in the same manner as they apply to private property.

    (5) A local authority or person or body of persons (whether incorporated or not) appointed, under section 28 of the Reserves Act 1977, to control and manage any public reserve that is vested in the Crown is, by virtue of that appointment, deemed to have an interest in that reserve.

    Section 8(2)(c): amended, on 5 December 2012, by section 6 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

8A Provisions affecting application of amendments to this Act
  • The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.

    Section 8A: inserted, on 8 August 2014, by section 6 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Part 2
Purpose of local government, and role and powers of local authorities

9 Outline of Part
  • This Part—

    • (a) states the purpose of local government; and

    • (b) states the role and powers of local authorities.

Subpart 1Purpose of local government

10 Purpose of local government
  • (1) The purpose of local government is—

    • (a) to enable democratic local decision-making and action by, and on behalf of, communities; and

    • (b) to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

    (2) In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, means infrastructure, services, and performance that are—

    • (a) efficient; and

    • (b) effective; and

    • (c) appropriate to present and anticipated future circumstances.

    Section 10(1)(b): replaced, on 5 December 2012, by section 7(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 10(2): inserted, on 5 December 2012, by section 7(2) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

Subpart 2Role of local authorities and related matters

11 Role of local authority
  • The role of a local authority is to—

    • (a) give effect, in relation to its district or region, to the purpose of local government stated in section 10; and

    • (b) perform the duties, and exercise the rights, conferred on it by or under this Act and any other enactment.

11A Core services to be considered in performing role
  • In performing its role, a local authority must have particular regard to the contribution that the following core services make to its communities:

    • (a) network infrastructure:

    • (b) public transport services:

    • (c) solid waste collection and disposal:

    • (d) the avoidance or mitigation of natural hazards:

    • (e) libraries, museums, reserves, and other recreational facilities and community amenities.

    Section 11A: inserted, on 27 November 2010, by section 5 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 11A(e): replaced, on 8 August 2014, by section 7 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

12 Status and powers
  • (1) A local authority is a body corporate with perpetual succession.

    (2) For the purposes of performing its role, a local authority has—

    • (a) full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and

    • (b) for the purposes of paragraph (a), full rights, powers, and privileges.

    (3) Subsection (2) is subject to this Act, any other enactment, and the general law.

    (4) A territorial authority must exercise its powers under this section wholly or principally for the benefit of its district.

    (5) A regional council must exercise its powers under this section wholly or principally for the benefit of all or a significant part of its region, and not for the benefit of a single district.

    (6) Subsections (4) and (5) do not—

    • (a) prevent 2 or more local authorities engaging in a joint undertaking, a joint activity, or a co-operative activity; or

    • (b) prevent a transfer of responsibility from one local authority to another in accordance with this Act; or

    • (c) restrict the activities of a council-controlled organisation; or

    • (d) prevent a local authority from making a donation (whether of money, resources, or otherwise) to another local authority or to a person or organisation outside its district or region or outside New Zealand—

      • (i) if the local authority considers, on reasonable grounds, that the donation will benefit its district or region, or the communities within its district or region; or

      • (ii) if the local authority considers, on reasonable grounds, that a benefit will be conferred on the local government sector as a whole; or

      • (iii) for emergency relief; or

    • (e) prevent a local authority from making a donation (whether of money, resources, or otherwise) to a local government body outside New Zealand to enable it to share its experience and expertise with that body.

    Section 12(6)(c): amended, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 12(6)(d): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 12(6)(e): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

13 Performance of functions under other enactments
  • Sections 10 and 12(2) apply to a local authority performing a function under another enactment to the extent that the application of those provisions is not inconsistent with the other enactment.

14 Principles relating to local authorities
  • (1) In performing its role, a local authority must act in accordance with the following principles:

    • (a) a local authority should—

      • (i) conduct its business in an open, transparent, and democratically accountable manner; and

      • (ii) give effect to its identified priorities and desired outcomes in an efficient and effective manner:

    • (b) a local authority should make itself aware of, and should have regard to, the views of all of its communities; and

    • (c) when making a decision, a local authority should take account of—

      • (i) the diversity of the community, and the community's interests, within its district or region; and

      • (ii) the interests of future as well as current communities; and

      • (iii) the likely impact of any decision on the interests referred to in subparagraphs (i) and (ii):

    • (d) a local authority should provide opportunities for Māori to contribute to its decision-making processes:

    • (e) a local authority should actively seek to collaborate and co-operate with other local authorities and bodies to improve the effectiveness and efficiency with which it achieves its identified priorities and desired outcomes; and

    • (f) a local authority should undertake any commercial transactions in accordance with sound business practices; and

    • (fa) a local authority should periodically—

      • (i) assess the expected returns to the authority from investing in, or undertaking, a commercial activity; and

      • (ii) satisfy itself that the expected returns are likely to outweigh the risks inherent in the investment or activity; and

    • (g) a local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region, including by planning effectively for the future management of its assets; and

    • (h) in taking a sustainable development approach, a local authority should take into account—

      • (i) the social, economic, and cultural interests of people and communities; and

      • (ii) the need to maintain and enhance the quality of the environment; and

      • (iii) the reasonably foreseeable needs of future generations.

    (2) If any of these principles conflict in any particular case, the local authority should resolve the conflict in accordance with the principle in subsection (1)(a)(i).

    Section 14(1)(c)(iii): replaced, on 5 December 2012, by section 8(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 14(1)(e): replaced, on 8 August 2014, by section 8(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 14(1)(fa): inserted, on 27 November 2010, by section 6 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 14(1)(g): replaced, on 8 August 2014, by section 8(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 14(1)(h)(i): amended, on 5 December 2012, by section 8(2) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 14(2): amended, on 5 December 2012, by section 8(3) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

Subpart 3Co-ordination of responsibilities of local authorities

15 Triennial agreements
  • (1) Not later than 1 March after each triennial general election of members, all local authorities within each region must enter into an agreement under this section covering the period until the next triennial general election of members.

    (2) An agreement under this section must include—

    • (a) protocols for communication and co-ordination among the local authorities; and

    • (b) a statement of the process by which the local authorities will comply with section 16 in respect of proposals for new regional council activities; and

    • (c) processes and protocols through which all local authorities can participate in identifying, delivering, and funding facilities and services of significance to more than 1 district.

    (3) An agreement under this section may also include—

    • (a) commitments by local authorities within the region to establish or continue 1 or more joint committees or other joint governance arrangements to give better effect to 1 or more of the matters referred to in subsection (2); and

    • (b) the matters to be included in the terms of reference for any such committees or arrangements, including any delegations.

    (4) An agreement under this section may be varied by agreement between all the local authorities within the region.

    (5) An agreement under this section remains in force until it is replaced by another agreement.

    (6) If a decision of a local authority is significantly inconsistent with, or is expected to have consequences that will be significantly inconsistent with, the agreement under this section that is currently in force within the region, the local authority must, when making the decision, clearly identify—

    • (a) the inconsistency; and

    • (b) the reasons for the inconsistency; and

    • (c) any intention of the local authority to seek an amendment to the agreement under subsection (4).

    (7) As soon as practicable after making any decision to which subsection (6) applies, the local authority must give to each of the other local authorities within the region notice of the decision and of the matters specified in that subsection.

    Section 15: replaced, on 8 August 2014, by section 9 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

16 Significant new activities proposed by regional council
  • (1) This section applies if,—

    • (a) in the exercise of its powers under section 12(2), a regional council proposes to undertake a significant new activity; or

    • (b) a regional council-controlled organisation proposes to undertake a significant new activity; and

    • (c) in either case, 1 or more territorial authorities in the region of the regional council—

      • (i) are already undertaking the significant new activity; or

      • (ii) have notified their intention to do so in their long-term plans or their annual plans.

    (2) When this section applies, the regional council—

    • (a) must advise all the territorial authorities within its region and the Minister of the proposal and the reasons for it; and

    • (b) must include the proposal in the consultation document referred to in section 93A.

    (3) A proposal included in the consultation document referred to in section 93A must include—

    • (a) the reasons for the proposal; and

    • (b) the expected effects of the proposal on the activities of the territorial authorities within the region; and

    • (c) the objections raised by those territorial authorities, if any.

    (4) If, after complying with subsection (2), the regional council indicates that it intends to continue with the proposal, but agreement is not reached on the proposal among the regional council and all of the affected territorial authorities, either the regional council or 1 or more of the affected territorial authorities may submit the matter to mediation.

    (5) Mediation must be by a mediator or a mediation process—

    • (a) agreed to by the relevant local authorities; or

    • (b) in the absence of an agreement, as specified by the Minister.

    (6) If mediation is unsuccessful, either the regional council or 1 or more affected territorial authorities may ask the Minister to make a binding decision on the proposal.

    (7) Before making a binding decision, the Minister must—

    • (a) seek and consider the advice of the Commission; and

    • (b) consult with other Ministers whose responsibilities may be affected by the proposal.

    (8) This section does not apply to—

    • (a) a proposal by a regional council to establish, own, or operate a park for the benefit of its region; or

    • (b) a proposal to transfer responsibilities; or

    • (c) a proposal to transfer bylaw-making powers; or

    • (d) a reorganisation application under Schedule 3; or

    • (e) a proposal to undertake an activity or enter into an undertaking jointly with the Crown.

    (9) For the purposes of this section,—

    affected territorial authority means a territorial authority—

    • (a) the district of which is wholly or partly in the region of a regional council; and

    • (b) that undertakes, or has notified in its long-term plan or annual plan its intention to undertake, the significant new activity

    annual plan

    • (a) means a report adopted under section 223D of the Local Government Act 1974; and

    • (b) includes such a report that section 281 applies to

    new activity

    • (a) means an activity that, before the commencement of this section, a regional council was not authorised to undertake; but

    • (b) does not include an activity authorised by or under an enactment

    regional council-controlled organisation means a council-controlled organisation that is—

    • (a) a company—

      • (i) in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—

        • (A) held by 1 or more regional councils; or

        • (B) controlled, directly or indirectly, by 1 or more regional councils; or

      • (ii) in which 1 or more regional councils have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or

    • (b) an organisation in respect of which 1 or more regional councils have, whether or not jointly with other regional councils or persons,—

      • (i) control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the organisation; or

      • (ii) the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the organisation.

    Section 16(1)(c)(ii): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 16(2)(b): replaced, on 8 August 2014, by section 10(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 16(3): amended, on 8 August 2014, by section 10(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 16(8)(d): amended, on 5 December 2012, by section 9 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 16(9) affected territorial authority paragraph (b): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

17 Transfer of responsibilities
  • (1) A regional council may transfer 1 or more of its responsibilities to a territorial authority in accordance with this section.

    (2) A territorial authority may transfer 1 or more of its responsibilities to a regional council in accordance with this section.

    (3) A transfer of responsibilities under this section must be made by agreement between the local authorities concerned and may be on the terms and conditions that are agreed between them.

    (4) A local authority may not agree to transfer a responsibility or agree to accept a transfer of a responsibility under this section unless it is satisfied, following consultation in accordance with section 82, that the benefits of the proposed transfer to its district or region will outweigh any negative impacts of the proposal.

    (5) A local authority must notify the Minister of its intention to transfer a responsibility or accept a transfer of responsibility under this section.

    (6) From the time a transfer takes effect, the responsibilities and powers of the local authority receiving the transfer are extended as necessary to enable the local authority to undertake, exercise, and perform the transferred responsibilities.

    (7) If a transfer of responsibilities has been made, either local authority that was a party to the transfer may, through the process set out in subsections (3) to (6), initiate—

    • (a) a variation of the terms of the transfer; or

    • (b) the reversal of the transfer.

    (8) In this section, responsibility means any responsibility, duty, or legal obligation except a responsibility, duty, or legal obligation conferred by or under any other Act, and includes—

    • (a) a responsibility that has previously been transferred under this section; and

    • (b) any powers associated with the responsibility, duty, or legal obligation.

    (9) Nothing in this section limits the ability of a local authority to—

    • (a) delegate the exercise of any responsibility to another local authority; or

    • (b) enter into a contractual agreement with another local authority for the performance of any activity or function.

    Compare: 1974 No 66 ss 37SC, 37SD

    Section 17: replaced, on 8 August 2014, by section 11 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

17A Delivery of services
  • (1) A local authority must review the cost-effectiveness of current arrangements for meeting the needs of communities within its district or region for good-quality local infrastructure, local public services, and performance of regulatory functions.

    (2) Subject to subsection (3), a review under subsection (1) must be undertaken—

    • (a) in conjunction with consideration of any significant change to relevant service levels; and

    • (b) within 2 years before the expiry of any contract or other binding agreement relating to the delivery of that infrastructure, service, or regulatory function; and

    • (c) at such other times as the local authority considers desirable, but not later than 6 years following the last review under subsection (1).

    (3) Despite subsection (2)(c), a local authority is not required to undertake a review under subsection (1) in relation to the governance, funding, and delivery of any infrastructure, service, or regulatory function—

    • (a) to the extent that the delivery of that infrastructure, service, or regulatory function is governed by legislation, contract, or other binding agreement such that it cannot reasonably be altered within the following 2 years; or

    • (b) if the local authority is satisfied that the potential benefits of undertaking a review in relation to that infrastructure, service, or regulatory function do not justify the costs of undertaking the review.

    (4) A review under subsection (1) must consider options for the governance, funding, and delivery of infrastructure, services, and regulatory functions, including, but not limited to, the following options:

    • (a) responsibility for governance, funding, and delivery is exercised by the local authority:

    • (b) responsibility for governance and funding is exercised by the local authority, and responsibility for delivery is exercised by—

      • (i) a council-controlled organisation of the local authority; or

      • (ii) a council-controlled organisation in which the local authority is one of several shareholders; or

      • (iii) another local authority; or

      • (iv) another person or agency:

    • (c) responsibility for governance and funding is delegated to a joint committee or other shared governance arrangement, and responsibility for delivery is exercised by an entity or a person listed in paragraph (b)(i) to (iv).

    (5) If responsibility for delivery of infrastructure, services, or regulatory functions is to be undertaken by a different entity from that responsible for governance, the entity that is responsible for governance must ensure that there is a contract or other binding agreement that clearly specifies—

    • (a) the required service levels; and

    • (b) the performance measures and targets to be used to assess compliance with the required service levels; and

    • (c) how performance is to be assessed and reported; and

    • (d) how the costs of delivery are to be met; and

    • (e) how any risks are to be managed; and

    • (f) what penalties for non-performance may be applied; and

    • (g) how accountability is to be enforced.

    (6) Subsection (5) does not apply to an arrangement to the extent that any of the matters specified in paragraphs (a) to (g) are—

    • (a) governed by any provision in an enactment; or

    • (b) specified in the constitution or statement of intent of a council-controlled organisation.

    (7) Subsection (5) does not apply to an arrangement if the entity that is responsible for governance is satisfied that—

    • (a) the entity responsible for delivery is a community group or a not-for-profit organisation; and

    • (b) the arrangement does not involve significant cost or risk to any local authority.

    (8) The entity that is responsible for governance must ensure that any agreement under subsection (5) is made publicly available.

    (9) Nothing in this section requires the entity that is responsible for governance to make publicly accessible any information that may be properly withheld if a request for that information were made under the Local Government Official Information and Meetings Act 1987.

    Section 17A: inserted, on 8 August 2014, by section 12 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Subpart 4Minister and Secretary

18 Responsibilities, powers, and duties of Minister
  • (1) The responsibilities, powers, and duties conferred or imposed on the Minister of Internal Affairs by any of the Acts specified in Schedule 1, or by any regulations, rules, orders, or bylaws made under any of those Acts, must be exercised or performed by the Minister.

    (2) The Governor-General may, by Order in Council, amend Schedule 1 to add or delete any Act.

    Compare: 1974 No 66 s 2A

19 Secretary
  • The responsibilities, powers, and duties conferred on the Secretary for Internal Affairs by any of the Acts specified in Schedule 1, or by any regulations, rules, orders, or bylaws made under any such Act, must be exercised or performed by the Secretary for Local Government.

    Compare: 1974 No 66 s 2B(2)

Part 3
Structure and reorganisation of local government

20 Outline of Part
  • This Part—

    • (a) sets out the structure of local government; and

    • (b) provides for the reorganisation of local authorities; and

    • (c) continues the Local Government Commission.

Subpart 1Structure of local government

21 Local authorities
  • (1) Local government in New Zealand consists of the following local authorities:

    • (a) regional councils; and

    • (b) territorial authorities.

    (2) Every part of New Zealand (other than the Chatham Islands) that is within the district of a territorial authority must also be within the region of 1 or more regional councils.

    (3) Part 3 of Schedule 2 applies to the boundaries of regions and districts.

22 Minister is territorial authority in certain cases
  • (1) The Minister is the territorial authority for any part of New Zealand that does not form part of the district of a territorial authority.

    (2) Subsection (1)—

    • (a) does not apply at all in relation to any of the following:

      • (i) the territorial sea; or

      • (ii) the Kermadec Islands; or

      • (iii) the Sub-Antarctic Islands (which include the Antipodes Islands, the Auckland Islands, the Bounty Islands, Campbell Island and the islands adjacent to Campbell Island, and the Snares Islands); and

    • (b) does not apply in relation to the Three Kings Islands (which include Great Island, South West Island, West Island, North East Island, and several islets and rock stacks) for the purposes of the Building Act 2004.

    (3) For the purposes of the Building Act 2004,—

    • (a) the Minister of Local Government is the territorial authority for any part of New Zealand referred to in subsection (1); and

    • (b) the Minister of Conservation is the territorial authority for the islands referred to in subsection (2).

    Compare: 1974 No 66 s 37R

    Section 22(2): replaced, on 13 March 2012, by section 91(2) of the Building Amendment Act 2012 (2012 No 23).

    Section 22(3): inserted, on 13 March 2012, by section 91(2) of the Building Amendment Act 2012 (2012 No 23).

23 Description of local government
  • (1) A territorial authority must be either a city council or a district council.

    (2) A territorial authority that is a city council must be described as the [name of city] City Council.

    (3) A territorial authority that is a district council must be described as the [name of district] District Council.

    (3A) However, a territorial authority created as a unitary authority after 1 July 2013 must be described as [name of city or district] Council.

    (4) A regional council must be described as the [name of region] Regional Council.

    (4A) A local board must be described as the [name of local board area] Local Board.

    (5) Despite subsection (1), the Auckland Council and the Chatham Islands Council are territorial authorities.

    Compare: 1974 No 66 s 37L(2), (3)

    Section 23(3A): inserted, on 5 December 2012, by section 10 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 23(4A): inserted, on 8 August 2014, by section 13 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 23(5): substituted, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

Subpart 2Reorganisation of local authorities

24AA Purpose of local government reorganisation
  • The purpose of the local government reorganisation provisions of this Act is to improve the effectiveness and efficiency of local government by—

    • (a) providing communities with the opportunity to initiate, and participate in considering, alternative local government arrangements for their area; and

    • (b) requiring the Commission, in consultation with communities, to identify, develop, and implement in a timely manner the option that best promotes good local government.

    Section 24AA: inserted, on 5 December 2012, by section 11 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

24 Scope of local government reorganisation
  • (1) Local government reorganisation may provide for 1 or more of the following matters:

    • (a) the union of districts or regions:

    • (b) the constitution of a new district or region, including the constitution of a new local authority for that district or region:

    • (c) the abolition of a district or region, including the dissolution or abolition of the local authority for that district or region:

    • (d) the alteration of the boundaries of any district or region:

    • (e) the transfer of a statutory obligation from one local authority to another:

    • (f) the assumption by a territorial authority of the powers of a regional council:

    • (g) the establishment of a local board area, including the establishment of a local board for that local board area:

    • (h) in relation to a local board, other than a local board established under the Local Government (Auckland Council) Act 2009,—

      • (i) the means by which the chairperson is elected; and

      • (ii) whether the local board may include appointed members:

    • (i) the abolition of a local board area:

    • (j) the alteration of the boundaries of a local board area:

    • (k) the union of 2 or more local board areas.

    (2) Schedule 3 applies in relation to local government reorganisation.

    Section 24: replaced, on 5 December 2012, by section 12 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 24(1)(g): inserted, on 8 August 2014, by section 14 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 24(1)(h): inserted, on 8 August 2014, by section 14 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 24(1)(i): inserted, on 8 August 2014, by section 14 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 24(1)(j): inserted, on 8 August 2014, by section 14 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 24(1)(k): inserted, on 8 August 2014, by section 14 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

24A Transitional modification or suspension of certain statutory requirements after issue of final proposal for reorganisation
  • (1) The purpose of this section is to authorise the extension or postponement of certain statutory requirements after public notice of a final proposal relating to local government reorganisation is given under clause 22 of Schedule 3, but before the fate of the final proposal is known.

    (2) This section applies to a final reorganisation proposal only if the proposal provides for any of the matters specified in section 24(1)(a), (b), (c), or (f).

    (3) The Governor-General may, by Order in Council, in relation to an affected local authority,—

    • (a) extend, for a period not exceeding 12 months, the time by which the local authority would otherwise have to complete, within the specified period, any action relating to the preparation or adoption of any plan, policy, or strategy required by or under any enactment:

    • (b) extend the time by which the local authority would otherwise have to complete anything relating to, and dependent or consequential on, the action in relation to which the period has been extended under paragraph (a):

    • (c) postpone, to a date not more than 12 months after the date determined under section 10 of the Local Electoral Act 2001, the next triennial general election of members of the local authority.

    (4) However, the power under subsection (3)(c) may be exercised only if the triennial election, or any action or process preliminary to holding it, would otherwise be required to be held or taken in the specified period.

    (5) An Order in Council may be made only—

    • (a) during the specified period; and

    • (b) on the recommendation of the Minister; and

    • (c) if the Minister is satisfied that the Order in Council is—

      • (i) necessary to avoid public confusion or waste of public resources; or

      • (ii) in the interests of the district of the affected local authority; and

    • (d) with the agreement of—

      • (i) the affected local authority; and

      • (ii) the Commission.

    (6) In this section,—

    specified period means the period—

    • (a) beginning on the date on which public notice is given of the final proposal under clause 22 of Schedule 3; and

    • (b) ending on the close of the date that is 9 months after the day on which public notice is given under clause 22 of Schedule 3.

    Section 24A: inserted, on 5 December 2012, by section 13 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

25 Order in Council to give effect to final proposals and reorganisation schemes
  • (1) A final proposal—

    • (a) is given effect to by Order in Council; and

    • (b) has effect on and from the date specified for this purpose by Order in Council.

    (2) An Order in Council made under subsection (1)—

    • (a) must establish and provide for 1 or more transition bodies in accordance with—

      • (ii) the provisions in the final proposal relating to transitional matters; and

    • (b) may, with the agreement of the Commission, suspend any statutory requirement that an affected local authority would otherwise be subject to before a final proposal comes into effect, but only if the coming into effect of the final proposal would make compliance with the statutory requirement unnecessary or inappropriate.

    (3) An Order in Council made under subsection (1) may, if appropriate, amend Part 1 or 2 of Schedule 2.

    (4) A reorganisation scheme—

    • (a) is given effect to by Order in Council; and

    • (b) has effect on and from the date specified by Order in Council made under subsection (1)(a).

    (5) An Order in Council giving effect to a final proposal or reorganisation scheme is not invalid because it is inconsistent with the provisions of the final proposal or scheme if the inconsistency relates—

    • (a) to corrections of clerical, grammatical, or typographical errors; or

    • (b) to matters of a format or referential nature that do not alter the substance or effect of the final proposal or scheme.

    (6) If a reorganisation scheme does not specifically provide for a matter that the Secretary considers to be necessary, desirable, or incidental as a consequence of the scheme,—

    • (a) the Secretary must consult with the Commission, and each affected local authority, about the inclusion of the matter in the Order in Council under subsection (4); and

    • (b) the matter may be included in the Order in Council if considered appropriate by the Governor-General in Council.

    (7) Clauses 45 and 46 of Schedule 3 apply in respect of each reorganisation scheme that is given effect to by Order in Council, except to the extent that the reorganisation scheme provides that the clauses are—

    • (a) amended in their application by the reorganisation scheme; or

    • (b) declared not to apply.

    (8) Clauses 47 to 54 of Schedule 3 apply to each reorganisation scheme that is given effect to by Order in Council.

    (9) In this section,—

    final proposal means a final proposal to which clause 33 of Schedule 3 applies

    reorganisation scheme means a reorganisation scheme prepared and issued under clause 41(2) of Schedule 3.

    Section 25: replaced, on 5 December 2012, by section 14 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

26 Power to amend reorganisation schemes
  • (1) The Commission may issue a determination amending a reorganisation scheme if satisfied that—

    • (a) some further or other provision is necessary to enable, or better enable, the intention of the scheme; or

    • (b) some provision of the scheme is no longer relevant or appropriate to the intention of the scheme.

    (2) A determination issued under subsection (1) has effect on and from the date specified for this purpose by Order in Council.

    (3) In this section, reorganisation scheme means—

    • (a) a reorganisation scheme prepared under Schedule 3 and given effect to by Order in Council:

    Compare: 1974 No 66 s 37ZZZO

26A Duties of local authorities in relation to local government reorganisation
  • (1) It is the duty of every local authority to co-operate with, give reasonable assistance to, and provide information to the Commission to enable it to perform its functions and exercise its powers in relation to local government reorganisation.

    (2) Without limiting subsection (1), an affected local authority must comply with any lawful request by the Commission for information held or reasonably available to the local authority that may be relevant to a proposed reorganisation or to the development of a reorganisation scheme.

    (3) An affected local authority must not make a decision described in subsection (4) at any time after an Order in Council giving effect to a final proposal is made under section 25, without first consulting the Commission.

    (4) Subsection (3) applies to any decision of an affected local authority that may, directly or because of its consequences,—

    • (a) significantly prejudice the implementation of the final proposal; or

    • (b) significantly constrain the powers or capacity of any local authority to be established or changed under the final proposal, or any subsidiary of any such local authority, following the implementation of the final proposal; or

    • (c) have a significant negative impact on the assets or liabilities that may be transferred to any local authority in the implementation of the final proposal.

    Section 26A: inserted, on 5 December 2012, by section 15 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

27 Application to be called city council or district council
  • (1) A territorial authority that wishes to be called a city council or a district council may, instead of making a reorganisation application under Schedule 3, apply to the Local Government Commission.

    (2) The Commission may refer the application to the Minister for the preparation of an Order in Council to give effect to it, if the Commission considers that—

    • (a) the application should be approved; and

    • (b) in the case of a territorial authority wishing to be called a city council, the district of the territorial authority meets the criteria specified in clause 16 of Schedule 3.

    (3) The Governor-General may, by Order in Council made on the recommendation of the Minister, give effect to the application.

    (4) The Order in Council may consequentially amend Part 2 of Schedule 2.

    Section 27(1): amended, on 5 December 2012, by section 16 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 27(2)(b): amended, on 8 August 2014, by section 15 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

27A Change of name of unitary authorities
  • (1) A unitary authority that is described as a city council or district council may apply to the Minister to change its name to the [name of city or district] Council.

    (2) The Governor-General may, by Order in Council made on the recommendation of the Minister, give effect to the application.

    (3) The Order in Council may consequentially amend Part 2 of Schedule 2.

    Section 27A: inserted, on 5 December 2012, by section 17 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

27B Orders in Council to be published in Gazette
  • An Order in Council made under any of sections 24A to 27A must be published in the Gazette.

    Section 27B: inserted, on 5 December 2012, by section 17 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

Subpart 3Local Government Commission

28 Local Government Commission
  • There continues to be a Local Government Commission.

    Compare: 1974 No 66 s 37V

29 Commission is body corporate with full powers
  • (1) The Commission is a body corporate with perpetual succession.

    (2) For the purpose of performing its functions, the Commission has—

    • (a) full capacity to carry on or undertake any activity, do any act, or enter into any transaction; and

    • (b) for the purposes of paragraph (a), full rights, powers, and privileges.

30 Functions and powers of Commission
  • (1) The Commission has the functions, duties, and powers conferred on it by this Act or any other enactment.

    (2) Without limiting subsection (1), the Commission may—

    • (a) provide information about local government; and

    • (b) promote good practice relating to a local authority or to local government generally.

    Compare: 1974 No 66 s 37W

31 Report to Minister on matters relating to local government
  • (1) The Commission may consider, report on, and make recommendations to the Minister and any relevant local authority on matters relating to a local authority or local government considered appropriate by the Commission.

    (1A) The Commission may consider, report on, and make recommendations to the Minister or any relevant local authority, or both, on any matter arising in the performance of its functions and exercise of its powers under Schedule 3.

    (2) The Commission must consider, report on, and make recommendations to the Minister and any relevant local authority on matters relating to a local authority or local government that are referred to the Commission by the Minister.

    (3) If the Minister refers any matter to the Commission under subsection (2), the Minister must immediately publish the terms of reference in the Gazette.

    (4) A local authority that receives a report or recommendation from the Commission under subsection (1) or subsection (2) must consider and respond to the Commission in relation to the report or recommendation.

    (5) A local authority must comply with subsection (4)—

    • (a) by a date specified by the Commission; or

    • (b) if the Commission does not specify a date, within 20 working days after receiving a report or recommendation.

    Compare: 1974 No 66 s 37X

    Section 31(1A): inserted, on 5 December 2012, by section 18 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

31A Minister's expectations of Commission in relation to local government reorganisation
  • (1) The Minister may, by notice in writing to the Commission, specify measures and expectations relating to the Commission's performance of its functions and exercise of its powers under Schedule 3.

    (2) Without limiting subsection (1), the Minister may specify—

    • (a) the time frames within which the Commission is expected to complete specified matters:

    • (b) which reorganisation applications are to be regarded by the Commission as having a higher priority.

    (3) Before specifying measures and expectations under this section, the Minister—

    • (a) must consult the Commission; and

    • (b) may consult any other persons or organisations that the Minister considers appropriate to consult.

    (4) The Commission must publish, on its Internet site,—

    • (a) any measures and expectations given to it by the Minister under subsection (1); and

    • (b) a statement of the impact that meeting those measures and expectations will have on the performance of its functions and exercise of its powers under Schedule 3.

    (5) The Commission must, in its report to the Minister under clause 31 of Schedule 4, describe how and the extent to which it has met the measures and expectations specified under subsection (1).

    Section 31A: inserted, on 5 December 2012, by section 19 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

32 Review of operation of Act and Local Electoral Act 2001
  • (1) The Commission must—

    • (b) present a report on the review to the Minister.

    (2) The report must be presented to the Minister as soon as practicable after the triennial general election of members of local authorities in 2007.

    (3) Without limiting the scope of the review, the review must determine and assess—

    • (a) the impact of conferring on local authorities full capacity, rights, powers, and privileges; and

    • (b) the cost-effectiveness of consultation and planning procedures; and

    • (c) the impact of increasing participation in local government and improving representation on local authorities.

    (4) The Commission must, no later than 1 July 2005, present a report to the Minister if it considers that amendments should be made to this Act or the Local Electoral Act 2001 before the triennial general election of members of local authorities in 2007.

33 Membership of Commission
  • (1) The Commission consists of 3 members appointed by the Minister.

    (2) One member of the Commission—

    • (a) must have a knowledge of tikanga Māori; and

    • (b) is to be appointed after consultation with the Minister of Māori Affairs.

    (3) The powers of the Commission are not affected by any vacancy in its membership.

    (4) No person is to be treated as employed in the service of the Crown for the purposes of the Government Superannuation Fund Act 1956 or the State Sector Act 1988 because the person is a member of the Commission.

    (5) In this section, tikanga Māori means Māori custom and practice.

    Compare: 1974 No 66 s 37Y

34 Commission is Commission of Inquiry
  • (1) The Commission is to be treated as a Commission of Inquiry under the Commissions of Inquiry Act 1908 and, subject to this Act, the provisions of that Act (except sections 2, 4A, and 11 to 15), as far as they are applicable, apply accordingly.

    (2) The chairperson of the Commission, or any other person (being a member of the Commission or an officer of the Public Service) purporting to act by direction or with the authority of the chairperson, may—

    • (a) issue summonses requiring the attendance of witnesses before the Commission or the production of documents; and

    • (b) do any other act preliminary or incidental to the investigation or consideration of any matter by the Commission.

    Compare: 1974 No 66 Schedule 3A cl 8

35 Evidence before Commission
  • (1) The Evidence Act 2006 applies to the Commission and its members, and to all proceedings before the Commission, in the same manner as if the Commission were a court within the meaning of that Act.

    (2) However, the Commission may receive as evidence any statement, document, information, or matter that may, in its opinion, assist it to deal effectively with the matter being dealt with, whether or not the same would be admissible in a court of law.

    Compare: 1974 No 66 Schedule 3A cl 9

    Section 35(1): amended, on 1 August 2007, by section 216 of the Evidence Act 2006 (2006 No 69).

36 Further provisions relating to Commission and its proceedings
  • Schedule 4 applies in respect of the Commission and its proceedings.

37 Appeals against decisions of Commission
  • Schedule 5 applies in respect of appeals against decisions of the Commission.

Part 4
Governance and management of local authorities and community boards

38 Outline of Part
  • This Part—

    • (a) identifies the principles and requirements for the governance and management of local authorities; and

    • (b) provides for the establishment of community boards and their governance arrangements.

Subpart 1Local authorities

Governance and management

39 Governance principles
  • A local authority must act in accordance with the following principles in relation to its governance:

    • (a) a local authority should ensure that the role of democratic governance of the community, and the expected conduct of elected members, is clear and understood by elected members and the community; and

    • (b) a local authority should ensure that the governance structures and processes are effective, open, and transparent; and

    • (c) a local authority should ensure that, so far as is practicable, responsibility and processes for decision-making in relation to regulatory responsibilities is separated from responsibility and processes for decision-making for non-regulatory responsibilities; and

    • (d) a local authority should be a good employer; and

    • (e) a local authority should ensure that the relationship between elected members and management of the local authority is effective and understood.

40 Local governance statements
  • (1) A local authority must prepare and make publicly available, following the triennial general election of members, a local governance statement that includes information on—

    • (a) the functions, responsibilities, and activities of the local authority; and

    • (b) any local legislation that confers powers on the local authority; and

    • (ba) the bylaws of the local authority, including for each bylaw, its title, a general description of it, when it was made, and, if applicable, the date of its last review under section 158 or 159; and

    • (c) the electoral system and the opportunity to change it; and

    • (d) representation arrangements, including the option of establishing Māori wards or constituencies, and the opportunity to change them; and

    • (e) members' roles and conduct (with specific reference to the applicable statutory requirements and code of conduct); and

    • (f) governance structures and processes, membership, and delegations; and

    • (h) consultation policies; and

    • (i) policies for liaising with, and memoranda or agreements with, Māori; and

    • (j) the management structure and the relationship between management and elected members; and

    • (ja) the remuneration and employment policy, if adopted; and

    • (k) equal employment opportunities policy; and

    • (l) key approved planning and policy documents and the process for their development and review; and

    • (m) systems for public access to it and its elected members; and

    • (n) processes for requests for official information.

    (2) A local authority must comply with subsection (1) within 6 months after each triennial general election of members of the local authority.

    (3) A local authority must update its governance statement as it considers appropriate.

    Section 40(1)(ba): inserted, on 14 October 2007, by section 7 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 40(1)(ja): inserted, on 5 December 2012, by section 20 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

Governing bodies and chief executives

41 Governing bodies
  • (1) A regional council must have a governing body consisting of—

    • (b) a chairperson elected by members of the regional council in accordance with clause 25 of Schedule 7.

    (2) A territorial authority must have a governing body consisting of members and a mayor elected in accordance with the Local Electoral Act 2001.

    (3) A governing body of a local authority is responsible and democratically accountable for the decision-making of the local authority.

    (4) A chairperson of a regional council, or a mayor of a territorial authority, is a Justice of the Peace during the time that he or she holds the office of chairperson or mayor.

    (5) An employee of a local authority who is elected to be a member of the local authority's governing body must resign from his or her position as an employee of the local authority before taking up his or her position as a member of the local authority.

    Compare: 1974 No 66 ss 101C, 101CA, 101N, 101T

41A Role and powers of mayors
  • (1) The role of a mayor is to provide leadership to—

    • (a) the other members of the territorial authority; and

    • (b) the people in the district of the territorial authority.

    (2) Without limiting subsection (1), it is the role of a mayor to lead the development of the territorial authority's plans (including the long-term plan and the annual plan), policies, and budgets for consideration by the members of the territorial authority.

    (3) For the purposes of subsections (1) and (2), a mayor has the following powers:

    • (a) to appoint the deputy mayor:

    • (b) to establish committees of the territorial authority:

    • (c) to appoint the chairperson of each committee established under paragraph (b), and, for that purpose, a mayor—

      • (i) may make the appointment before the other members of the committee are determined; and

      • (ii) may appoint himself or herself.

    (4) However, nothing in subsection (3) limits or prevents a territorial authority from—

    • (a) removing, in accordance with clause 18 of Schedule 7, a deputy mayor appointed by the mayor under subsection (3)(a); or

    • (b) discharging or reconstituting, in accordance with clause 30 of Schedule 7, a committee established by the mayor under subsection (3)(b); or

    • (c) appointing, in accordance with clause 30 of Schedule 7, 1 or more committees in addition to any established by the mayor under subsection (3)(b); or

    • (d) discharging, in accordance with clause 31 of Schedule 7, a chairperson appointed by the mayor under subsection (3)(c).

    (5) A mayor is a member of each committee of a territorial authority.

    (6) To avoid doubt, a mayor must not delegate any of his or her powers under subsection (3).

    (7) To avoid doubt,—

    • (a) clause 17(1) of Schedule 7 does not apply to the election of a deputy mayor of a territorial authority unless the mayor of the territorial authority declines to exercise the power in subsection (3)(a):

    • (b) clauses 25 and 26(3) of Schedule 7 do not apply to the appointment of the chairperson of a committee of a territorial authority established under subsection (3)(b) unless the mayor of the territorial authority declines to exercise the power in subsection (3)(c) in respect of that committee.

    Section 41A: inserted, on 12 October 2013, by section 21 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

42 Chief executive
  • (1) A local authority must, in accordance with clauses 33 and 34 of Schedule 7, appoint a chief executive.

    (2) A chief executive appointed under subsection (1) is responsible to his or her local authority for—

    • (a) implementing the decisions of the local authority; and

    • (b) providing advice to members of the local authority and to its community boards, if any; and

    • (c) ensuring that all responsibilities, duties, and powers delegated to him or her or to any person employed by the local authority, or imposed or conferred by an Act, regulation, or bylaw, are properly performed or exercised; and

    • (d) ensuring the effective and efficient management of the activities of the local authority; and

    • (e) maintaining systems to enable effective planning and accurate reporting of the financial and service performance of the local authority; and

    • (f) providing leadership for the staff of the local authority; and

    • (g) employing, on behalf of the local authority, the staff of the local authority (in accordance with any remuneration and employment policy); and

    • (h) negotiating the terms of employment of the staff of the local authority (in accordance with any remuneration and employment policy).

    (2A) In the case of a unitary authority for a district that includes 1 or more local board areas, a chief executive appointed under subsection (1) is also responsible to the unitary authority for—

    • (a) implementing the decisions of each local board within the district of the unitary authority; and

    • (b) implementing each local board agreement; and

    • (c) providing advice to each local board and its members; and

    • (d) providing the administrative and other facilities for each local board that are necessary for the board to carry out its functions and perform its duties.

    (3) A chief executive appointed under subsection (1) is responsible to his or her local authority for ensuring, so far as is practicable, that the management structure of the local authority—

    • (a) reflects and reinforces the separation of regulatory responsibilities and decision-making processes from other responsibilities and decision-making processes; and

    • (b) is capable of delivering adequate advice to the local authority to facilitate the explicit resolution of conflicting objectives.

    (4) For the purposes of any other Act, a chief executive appointed under this section is the principal administrative officer of the local authority.

    Compare: 1974 No 66 ss 119C, 119D

    Section 42(2)(g): amended, on 5 December 2012, by section 22(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 42(2)(h): amended, on 5 December 2012, by section 22(2) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 42(2A): inserted, on 8 August 2014, by section 16 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Other governance matters

43 Certain members indemnified
  • (1) A member of a local authority (or a committee, community board, or other subordinate decision-making body of that local authority) is indemnified by that local authority, whether or not that member was elected to that local authority or community board under the Local Electoral Act 2001 or appointed by the local authority, for—

    • (a) costs and damages for any civil liability arising from any action brought by a third party if the member was acting in good faith and in pursuance (or intended pursuance) of the responsibilities or powers of the local authority (or committee, community board, or other subordinate decision-making body of that local authority); and

    • (b) costs arising from any successfully defended criminal action relating to acts or omissions in his or her capacity as a member.

    (2) Subsection (1) does not apply to a member's liability for a loss under section 46.

    (3) To avoid doubt, a local authority may not indemnify a director of a council-controlled organisation for any liability arising from that director's acts or omissions in relation to that council-controlled organisation.

44 Report by Auditor-General on loss incurred by local authority
  • (1) For the purposes of this section and sections 45 and 46, a local authority is to be regarded as having incurred a loss to the extent that any of the following actions and omissions has occurred and the local authority has not been fully compensated for the action or omission concerned:

    • (a) money belonging to, or administrable by, a local authority has been unlawfully expended; or

    • (b) an asset has been unlawfully sold or otherwise disposed of by the local authority; or

    • (c) a liability has been unlawfully incurred by the local authority; or

    • (d) a local authority has intentionally or negligently failed to enforce the collection of money it is lawfully entitled to receive.

    (2) If the Auditor-General is satisfied that a local authority has incurred a loss, the Auditor-General may make a report on the loss to the local authority, and may include in the report any recommendations in relation to the recovery of the loss or the prevention of further loss that the Auditor-General thinks fit.

    (3) The Auditor-General must send copies of the report to the Minister and every member of the local authority.

    Compare: 1974 No 66 s 706A

45 Local authority to respond to Auditor-General
  • (1) On receipt of a report from the Auditor-General, the local authority must, within 28 days, respond in writing to the Auditor-General, and send a copy of the response to the Minister.

    (2) The local authority's response must—

    • (a) respond to each of the Auditor-General's recommendations; and

    • (b) include a statement as to what action, if any, the local authority intends to take in respect of the loss.

    (3) The Minister may extend the period of time within which the local authority must forward its response.

    (4) An individual member of the local authority may respond to the Auditor-General—

    • (a) by making a separate response to the Auditor-General, and sending a copy to the local authority and the Minister, within the time required for the local authority's response; or

    • (b) with the consent of the local authority, by incorporating that member's response in the local authority's response.

    (5) The local authority must, as soon as practicable after the expiry of the time for forwarding its response, table in a meeting of the local authority that is open to the public a copy of the Auditor-General's report, the local authority's response, and any response of an individual member of the local authority not incorporated in the local authority's response.

    Compare: 1974 No 66 s 706B

46 Members of local authority liable for loss
  • (1) If the Auditor-General has made a report on a loss to a local authority under section 44, then, without limiting any other person's liability for the loss, the loss is recoverable as a debt due to the Crown from each member of the local authority jointly and severally.

    (2) If the members of the local authority or any other person or persons do not pay the amount of the loss to the Crown or the local authority within a reasonable time, the Crown may commence proceedings to recover the loss from any or all of those members.

    (3) Any amount recovered by the Crown under subsection (2), less all costs incurred by the Crown in respect of the recovery, must be paid by the Crown to the local authority concerned.

    (4) It is a defence to any proceedings under subsection (2) if the defendant proves that the act or failure to act resulting in the loss occurred—

    • (a) without the defendant's knowledge; or

    • (b) with the defendant's knowledge but against the defendant's protest made at or before the time when the loss occurred; or

    • (c) contrary to the manner in which the defendant voted on the issue at a meeting of the local authority; or

    • (d) in circumstances where, although being a party to the act or failure to act, the defendant acted in good faith and in reliance on reports, statements, financial data, or other information prepared or supplied, or on professional or expert advice given, by any of the following persons:

      • (i) an employee of the local authority whom the defendant believed on reasonable grounds to be reliable and competent in relation to the matters concerned:

      • (ii) a professional adviser or expert in relation to matters that the defendant believed on reasonable grounds to be within the person's professional or expert competence.

    Compare: 1974 No 66 s 706C

47 Members may be required to pay costs of proceeding in certain cases
  • (1) This section applies if, in a proceeding commenced by the Attorney-General, the local authority is—

    • (a) held to have—

      • (i) disposed of, or dealt with, any of its property wrongfully or illegally; or

      • (ii) applied its property to any unlawful purpose; or

      • (iii) permitted the reserves that it must manage to be used for purposes not authorised by law; or

    • (b) restrained from acting in the ways referred to in paragraph (a).

    (2) If subsection (1) applies, costs and other expenses arising out of the proceeding or incurred in doing the things to which the proceeding relates—

    • (a) must not be paid out of general revenues by the local authority; and

    • (b) must be paid, by order of the court, by the members of the local authority who, by voting or otherwise, assented to the acts concerned.

    (3) The court must not make an order under subsection (2) against a member of the local authority if the member proves that, in doing the act concerned,—

    • (a) the member acted in good faith and in accordance with the written advice of the solicitor to the local authority; or

    • (b) the member acted honestly and reasonably and, having regard to all the circumstances of the case, the member ought fairly to be excused.

    Compare: 1974 No 66 s 706

48 Further provisions of Schedule 7
  • The following activities of local authorities must be carried out in accordance with Part 1 of Schedule 7:

    • (a) vacation of office by members:

    • (b) remuneration of members:

    • (c) conduct of members:

    • (d) election and removal of chairperson, deputy chairperson, and deputy mayor:

    • (e) calling of meetings:

    • (f) conduct of meetings:

    • (g) procedures at meetings:

    • (h) subordinate decision-making structures:

    • (i) delegations:

    • (j) employment of staff:

    • (k) adoption of a remuneration and employment policy.

    Section 48(k): inserted, on 5 December 2012, by section 23 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

Subpart 1ALocal boards

  • Subpart 1A: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48A Application
  • (1) This subpart applies only to a unitary authority for a district that includes 1 or more local board areas established by Order in Council under section 25.

    (2) Nothing in this subpart applies to the Auckland Council established under section 6 of the Local Government (Auckland Council) Act 2009 or to any local board of that council.

    Section 48A: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48B Interpretation
  • In this subpart, local activities means the non-regulatory activities of the unitary authority in respect of which a local board is allocated decision-making responsibility under section 48L, including—

    • (a) providing services; and

    • (b) providing and operating facilities; and

    • (c) providing funding and other support to groups and organisations.

    Section 48B: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48C Purpose of local boards
  • The purpose of a local board, in relation to its local board area, is to—

    • (a) enable democratic decision making by, and on behalf of, communities within the local board area; and

    • (b) better enable the purpose of local government to be given effect to within the local board area.

    Section 48C: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48D Unitary authority decision making shared between governing body and local boards
  • (1) Despite section 41(3), if a unitary authority has 1 or more local boards, the governing body and the local board or boards are each responsible and democratically accountable for the decision-making responsibilities of the unitary authority that are allocated to them in accordance with sections 48J to 48L.

    (2) A governance statement prepared by the unitary authority for the purposes of section 40 must include a description and an explanation of the matters referred to in subsection (1) of this section.

    Section 48D: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48E Membership of local boards
  • The membership of a local board consists of—

    • (b) if an Order in Council under section 25 so provides, members appointed by the governing body in accordance with section 19EA(1)(c) of the Local Electoral Act 2001; and

    • (c) a chairperson—

      • (i) elected by the members of the local board from among themselves using one of the systems of voting set out in clause 25(3) and (4) of Schedule 7; or

      • (ii) if an Order in Council under section 25 so provides, directly elected to that office by the electors of the local board area in accordance with section 19EB of the Local Electoral Act 2001.

    Section 48E: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48F Indemnification and liability of local board members
  • (1) Sections 43, 46, and 47 apply to a member of a local board, with any necessary modifications, as if the member were a member of the governing body of the unitary authority.

    (2) However, a member of a local board can be liable under section 46 or 47 only in respect of a matter that is the responsibility of the member's local board.

    Section 48F: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48G Status of local boards
  • (1) A local board is an unincorporated body.

    (2) A local board is not a local authority, a community board, or a committee of a governing body.

    (3) A local board does not have separate legal standing from the unitary authority and therefore, without limitation, may not—

    • (a) acquire, hold, or dispose of property; or

    • (b) enter into contracts; or

    • (c) appoint, suspend, or remove employees; or

    • (d) commence, or be a party to, or be heard in legal proceedings.

    (4) Nothing in this section limits the responsibility of a local board to make the decisions of the unitary authority that are allocated to it in accordance with section 48K.

    Section 48G: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48H Functions, duties, and powers of local boards
  • (1) A local board has the functions, duties, and powers conferred on a local board by or under this Act or any other enactment.

    (2) Without limiting subsection (1), a local board—

    • (a) must exercise the responsibilities conferred on it by section 48K(1); and

    • (b) must monitor and report on the implementation of the local board agreement for its local board area (in accordance with section 48O(6) and clause 34A of Schedule 10); and

    • (c) must communicate with community organisations and special interest groups within its local board area; and

    • (d) must undertake any responsibilities or duties that are delegated to it by the governing body under clause 36C of Schedule 7; and

    • (e) may consider and report to the governing body on any matter of interest or concern to the local board, whether or not the matter is referred to it by the governing body; and

    • (f) may exercise any powers that are delegated to it by the governing body under clause 36C of Schedule 7.

    Section 48H: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Decision making

  • Heading: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48I General scheme
  • (1) This section sets out the general scheme of sections 48J to 48O. These are the provisions of this Act that set out how a unitary authority with local boards makes its decisions. This section is by way of explanation only and does not limit or affect the other provisions of this Act or any other enactment.

    (2) Both the governing body and the local boards are responsible and democratically accountable for the decision making of the unitary authority. Whether responsibility for making any particular decision rests with the governing body or with 1 or more local boards depends on the nature of the decision being made.

    (3) Section 48J sets out the classes of decisions that the governing body must make. Section 48K sets out the classes of decisions that local boards must make. Both sections include a class of decisions in respect of non-regulatory activities of the unitary authority within a local board area. The governing body must allocate responsibility for decisions within this class to either itself or the local board for the area, in accordance with the principles in section 48L(2). The results of the allocation must then be set out in the long-term plan and the annual plans of the unitary authority so that people of each local board area, and any other persons, can easily determine whether the governing body or a local board is responsible for any particular decision of the unitary authority.

    (4) To determine local wishes and priorities in relation to the non-regulatory activities for which a local board is allocated responsibility, the board must consult its communities. The local board does this by preparing a local board plan under section 48N. This plan is used as a basis for the board to develop an annual local board agreement with the governing body under section 48O in which the nature, levels, and funding of the activities are set out.

    Section 48I: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48J Decision-making responsibilities of governing body
  • (1) The governing body is responsible and democratically accountable for—

    • (b) the decision making of the unitary authority in relation to—

      • (i) transport networks and infrastructure; and

      • (ii) any non-regulatory activities of the unitary authority that are allocated to the governing body in accordance with section 48L; and

    • (c) the decision making of the unitary authority in relation to the establishment and maintenance of capacity to provide, or to ensure the provision of, services and facilities (including local activities) by the unitary authority; and

    • (d) the decision making of the unitary authority in relation to the governance of its council-controlled organisations; and

    • (e) the decision making of the unitary authority in relation to compliance with section 101 (which relates to the financial management of a local authority); and

    • (f) reaching agreement with each local board (as set out in each local board agreement) in respect of local activities for the local board areas.

    (2) Before making a decision described in subsection (1)(a) to (d), the governing body must—

    • (a) comply with any requirement of this Act; and

    • (b) comply with any requirements of any other enactment; and

    • (c) consider any views and preferences expressed by a local board if the decision affects or may affect the responsibilities or operation of the local board or the well-being of communities within its local board area.

    Section 48J: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48K Decision-making responsibilities of local boards
  • (1) Despite section 41(3), each local board is responsible and democratically accountable for—

    • (a) the decision making of the unitary authority in relation to the non-regulatory activities of the unitary authority that are allocated to the local board in accordance with section 48L; and

    • (b) identifying and communicating to the unitary authority the interests and preferences of the people in its local board area in relation to the content of the strategies, policies, plans, and bylaws of the unitary authority; and

    • (c) identifying and developing bylaws specifically for its local board area, and proposing them to the governing body under section 150B; and

    • (d) reaching agreement with the governing body (as set out in the local board agreement) in respect of local activities for its local board area.

    (2) In carrying out the responsibilities described in this section, a local board must comply with the requirements of sections 76 to 82 as if every reference in those sections to a local authority were a reference to a local board.

    (3) In carrying out the responsibilities described in this section, a local board must collaborate and co-operate with 1 or more other local boards or any other body or entity if the local board is satisfied that the interests and preferences of communities within the local board area will be better served by doing so.

    Section 48K: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48L Principles for allocation of decision-making responsibilities of unitary authority
  • (1) Decision-making responsibility for any non-regulatory activity of the unitary authority within a local board area must be allocated by the governing body—

    • (a) to either the governing body or the local board for that area; and

    • (b) in accordance with the principles set out in subsection (2); and

    • (c) after considering the views and preferences expressed by the local board.

    (2) The principles are—

    • (a) decision-making responsibility for a non-regulatory activity of the unitary authority within a local board area should be exercised by the local board for that area unless paragraph (b) applies:

    • (b) decision-making responsibility for a non-regulatory activity of the unitary authority within a local board area should be exercised by its governing body if the nature of the activity is such that decision making on a district-wide basis will better promote the interests of the communities in the district because—

      • (i) the impact of the decision will extend beyond the local board area; or

      • (ii) effective decision making will require alignment or integration with other decisions that are the responsibility of the governing body; or

      • (iii) the benefits of a consistent or co-ordinated approach in the district will outweigh the benefits of reflecting the particular needs and preferences of the communities within the local board area.

    (3) The long-term plan and each annual plan must identify the non-regulatory activities of the unitary authority for which decision-making responsibility is allocated to 1 or more local boards as set out in clauses 17A and 21A of Schedule 10.

    Section 48L: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Local boards funding policy

  • Heading: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48M Local boards funding policy
  • (1) To provide for predictability and certainty about levels of funding for local boards, a unitary authority must adopt a local boards funding policy as part of its long-term plan.

    (2) The local boards funding policy must set—

    • (a) the basis on which the total funds to be allocated to meet the cost of all local activities within the district is to be determined; and

    • (b) the formula by which the total funds allocated by the unitary authority for meeting the cost of funding local activities are to be allocated to each local board; and

    • (c) the formula by which the total funds allocated by the unitary authority for meeting the cost of funding the administrative support to local boards are to be allocated to each local board.

    (3) The local boards funding policy must also identify any funding (except funding dedicated to particular purposes) that may be available to local boards for local activities and the criteria or process by which it may be allocated to them.

    (4) The formula referred to in subsection (2)(b) must allocate funds to each local board in a way that provides an equitable capacity for the local board to enhance the well-being of the communities in its local board area, having regard to the following factors:

    • (a) the level of dependence on local government services and facilities in each local board area and in other parts of the district (as informed by information available to the unitary authority by reasonable means, and relating to the socio-economic, population, age profile, and other demographic characteristics of each local board area and other part of the district); and

    • (b) the costs of achieving and maintaining the identified levels of service provision for local activities in each local board area; and

    • (c) the rates revenue and any other revenue derived from each local board area in relation to local activities; and

    • (d) any other factor identified by the unitary authority as significantly affecting the nature and level of services needed in any local board area or any other part of the district (for example, the geographic isolation of a particular local board area or part of the district).

    (5) The formula referred to in subsection (2)(c) must allocate funds to each local board in a way that provides equitable resources and support to that local board, having regard to the following factors:

    • (a) the number of elected members on the local board; and

    • (b) the size of the local board area; and

    • (c) any other factor identified by the unitary authority as significantly affecting the operational costs of the local board; and

    • (d) the funding amount allocated to the local board under subsection (4).

    (6) If the unitary authority amends its local boards funding policy under section 93(4), only a significant amendment to the policy is required to be audited in accordance with sections 93D(4) and 94.

    Section 48M: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Local board plans and agreements

  • Heading: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48N Local board plans
  • (1) Each local board must adopt a local board plan—

    • (a) as soon as practicable after each triennial general election; but

    • (b) not later than 31 October in the year immediately after the year of that election.

    (2) The purpose of a local board plan is—

    • (a) to reflect the priorities and preferences of the communities within the local board area in respect of the level and nature of local activities to be provided by the unitary authority over the next 3 years; and

    • (b) to identify and describe the interests and preferences of the people within the local board area for the purpose of enabling the local board to communicate those interests and preferences for the purposes of section 48K(1)(b); and

    • (c) to provide a basis for developing the local board agreement for the next 3 years; and

    • (d) to inform the development of the next long-term plan, particularly in relation to the identification of the non-regulatory activities of the unitary authority for which decision-making responsibility should be allocated to the local board; and

    • (e) to provide a basis for accountability of the local board to the communities in the local board area; and

    • (f) to provide an opportunity for people to participate in decision-making processes on the nature and level of local activities to be provided by the unitary authority within the local board area.

    (3) A local board plan must include—

    • (a) a statement of the default levels of service for local activities; and

    • (b) an explanation of each variation from the default levels of services proposed for the local board area, if any; and

    • (c) an estimate of the additional cost or saving associated with each variation, if any; and

    • (d) an indicative local board budget, incorporating the estimates referred to in paragraph (c), that—

      • (i) does not exceed the estimated funding allocation for the local board for the following year included in the long-term plan under clause 17A(c) of Schedule 10; or

      • (ii) exceeds the estimated funding allocation referred to in subparagraph (i), but identifies how the expenses in excess of that allocation are proposed to be met from 1 or more local revenue sources.

    (4) In adopting a local board plan under subsection (1), a local board may follow whatever processes it considers appropriate to give effect to—

    • (a) the purpose of the plan; and

    (5) In this section,—

    default levels of service means the levels of service provision for local activities in the district that are—

    • (a) funded in each local board funding allocation; and

    • (b) specified in the long-term plan (in accordance with clause 4 of Schedule 10)

    following year means the year commencing on the next 1 July.

    (6) In subsection (3)(d)(ii), local revenue sources include—

    • (a) a targeted rate for all or part of the local board area; and

    • (b) a fee or charge relating to a local activity; and

    • (c) any other revenue connected with a local activity.

    Section 48N: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48O Local board agreements
  • (1) For each financial year, the unitary authority must have a local board agreement (as agreed between the governing body and the local board) for each local board area.

    (2) A local board agreement must set out how the unitary authority will, in the year to which the agreement relates, reflect the priorities and preferences in the local board's plan in respect of—

    • (a) the local activities to be provided in the local board area; and

    • (b) the responsibilities, duties, or powers delegated to the local board by the governing body under clause 36C of Schedule 7; and

    • (c) the implementation or enforcement of bylaws made by the unitary authority as a result of a proposal from the local board.

    (3) A local board agreement is not required to reflect the priorities and preferences in its local board plan in respect of the matters referred to in subsection (2) to the extent that 1 or more of the following apply:

    • (a) the local board determines that the priorities and preferences in the plan no longer reflect the priorities and preferences of the communities in the local board area; or

    • (b) the governing body determines that the indicative budget in the plan is, or has become, significantly inaccurate; or

    • (c) consistency with the plan would be contrary to any enactment.

    (4) A local board agreement must not be inconsistent with the adopted strategies, plans, policies, and objectives of the governing body.

    (5) For the purposes of subsection (2)(a), a local board agreement must, in respect of the local activities to be provided in the local board area in the year to which the agreement relates, include—

    • (a) a statement of the intended levels of service provision that specifies—

      • (i) any performance measures specified in a rule made under section 261B for each activity described in clause 2(2) of Schedule 10; and

      • (ii) the performance measures that the unitary authority considers will enable the public to assess the level of service for major aspects of an activity for which performance measures have not been specified as described in subparagraph (i); and

      • (iii) the performance target or targets set by the unitary authority for each performance measure; and

      • (iv) any intended changes to the level of service that was provided in the year before the year to which the agreement relates and the reasons for the change; and

    • (b) the funding impact statement in the form prescribed for inclusion in an annual plan under clause 20(2) of Schedule 10; and

    • (c) a statement of how any expenses in excess of the local board's estimated funding allocation under clause 21A(b) of Schedule 10 are to be met (including estimated revenue levels and the other sources of funding).

    (6) Each local board must monitor the implementation of the local board agreement for its local board area.

    Section 48O: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48P Consultation required on proposed content of local board agreement
  • (1) A unitary authority undertaking consultation on the proposed content of a long-term plan or an annual plan under this Act must undertake consultation on the proposed content of each local board agreement to be included in that long-term plan or annual plan in accordance with sections 93A to 93G, or section 95(2), as the case may require.

    (2) Subsection (1) does not prevent the unitary authority undertaking other consultation that may be desirable in relation to the proposed content of a local board agreement.”

    Section 48P: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48Q Application of Schedule 7 to local boards and their members
  • (1) Part 1A of Schedule 7 applies to a local board and its members.

    (2) Part 1 of Schedule 7 (excluding clauses 15 and 32AA to 36A) applies to a local board and its members, with any necessary modifications, as if the local board were a local authority and its members were members of the local authority.

    Section 48Q: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Disputes between local boards and governing body

  • Heading: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48R Disputes about allocation of decision-making responsibilities or proposed bylaws
  • (1) Subsection (2) applies if—

    • (a) 1 or more local boards are dissatisfied with a decision of the governing body under section 48L(1); or

    (2) The local board or boards concerned and the governing body must make reasonable efforts to reach a mutually acceptable and timely resolution of the dispute, having regard to—

    • (a) the requirements of this Act; and

    • (b) the current and future well-being of the communities of the district, and the interests and preferences of the communities within each affected local board area.

    (3) If, after acting under subsection (2), the dispute is still unresolved, 1 or more local boards may apply, in writing, to the Commission for a binding determination on the matter.

    (4) An application must be accompanied by copies of all reports, correspondence, and other information that are relevant to the matter and held by the local board or boards.

    Section 48R: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

48S Local Government Commission to determine disputes
  • (1) Promptly after receiving an application under section 48R(3), the Local Government Commission must notify the mayor and the chief executive of the unitary authority of the application and request them to provide, within 7 days after receiving the notice, copies of all information held by the unitary authority that is relevant to the matter, including all reports and correspondence.

    (2) After receiving the information from the mayor and the chief executive, the Commission must—

    • (a) consider the information it has received from them, and from the local board or boards concerned under section 48R(4); and

    • (b) determine the matter, having regard to—

      • (i) the requirements of this Act; and

      • (ii) the current and future well-being of the communities of the district, and the interests and preferences of the communities within each affected local board area; and

      • (iii) any other matter that the Commission considers on reasonable grounds to be relevant.

    (3) For the purposes of making a determination, the Commission—

    • (a) must treat the matter as urgent; and

    • (b) may make any inquiries that it considers appropriate; and

    • (c) may (but is not obliged to) hold meetings with the local board or boards, the governing body, or any other person.

    (4) The Commission may apportion the actual and reasonable costs incurred by it in making a determination between the local board or boards and the governing body as it thinks fit, having regard to the merits of the initial positions of the local board or boards and the governing body.

    (5) Any costs apportioned to a local board under subsection (4) must be paid from the local board's budget.

    (6) Subsection (7) applies if—

    • (a) the Commission is required to determine a matter that relates to the content of an adopted long-term plan; and

    • (b) the Commission determines that the long-term plan should be amended.

    (7) The unitary authority must amend the long-term plan to the extent necessary to give effect to the determination and may do so without further authority than this section.

    Section 48S: inserted, on 8 August 2014, by section 17 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Subpart 2Community boards

49 Establishment of community boards
  • (1) A community board must be established for each community constituted, in accordance with Schedule 6, by—

    • (a) an Order in Council made under section 25; or

    • (b) a resolution made by the territorial authority within whose district the community will be situated as a result of a proposal by electors to establish a community; or

    • (c) a resolution made by the territorial authority within whose district the community will be situated as a result of the territorial authority's review of representation arrangements.

    (2) The community board must be described as the [name of community] Community Board.

    Compare: 1974 No 66 s 101ZG

    Section 49(1)(a): amended, on 5 December 2012, by section 24 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

50 Membership of community boards
  • The membership of a community board consists of—

    • (b) members (if any) of, and appointed in accordance with the Local Electoral Act 2001 by, the territorial authority in whose district the relevant community is situated.

51 Status of community boards
  • A community board—

    • (a) is an unincorporated body; and

    • (b) is not a local authority; and

    • (c) is not a committee of the relevant territorial authority.

    Compare: 1974 No 66 s 101ZP

52 Role of community boards
  • The role of a community board is to—

    • (a) represent, and act as an advocate for, the interests of its community; and

    • (b) consider and report on all matters referred to it by the territorial authority, or any matter of interest or concern to the community board; and

    • (c) maintain an overview of services provided by the territorial authority within the community; and

    • (d) prepare an annual submission to the territorial authority for expenditure within the community; and

    • (e) communicate with community organisations and special interest groups within the community; and

    • (f) undertake any other responsibilities that are delegated to it by the territorial authority.

    Compare: 1974 No 66 s 101ZY

53 Powers of community boards
  • (1) A community board has the powers that are—

    • (a) delegated to it by the relevant territorial authority in accordance with clause 32 of Schedule 7; or

    • (b) prescribed by the Order in Council constituting its community.

    (2) The powers of a community board prescribed by Order in Council expire at the close of 6 years after the order comes into force.

    (3) Despite subsection (1), a community board may not—

    • (a) acquire, hold, or dispose of property; or

    • (b) appoint, suspend, or remove staff.

    Compare: 1974 No 66 ss 101ZZ, 101ZZA

54 Application of other provisions to community boards
  • (1) Part 2 of Schedule 7 applies to community boards.

    (2) Part 1 of Schedule 7 (excluding clauses 15 and 33 to 36) applies to community boards, with all necessary modifications, as if they were local authorities.

Part 5
Council-controlled organisations and council organisations

55 Outline of Part
  • This Part establishes—

    • (a) requirements for the governance and accountability of council-controlled organisations and council organisations; and

    • (b) procedures for the transfer of local authority undertakings to council-controlled organisations.

Establishment

56 Consultation required before council-controlled organisation established
  • (1) Before a local authority may establish or become a shareholder in a council-controlled organisation, the local authority must undertake consultation in accordance with section 82.

    (2) The consultation required in subsection (1) may be undertaken as part of another proposal or as part of a long-term plan.

    Section 56(1): replaced, on 8 August 2014, by section 18 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 56(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Directors

57 Appointment of directors
  • (1) A local authority must adopt a policy that sets out an objective and transparent process for—

    • (a) the identification and consideration of the skills, knowledge, and experience required of directors of a council organisation; and

    • (b) the appointment of directors to a council organisation; and

    • (c) the remuneration of directors of a council organisation.

    (2) A local authority may appoint a person to be a director of a council organisation only if the person has, in the opinion of the local authority, the skills, knowledge, or experience to—

    • (a) guide the organisation, given the nature and scope of its activities; and

    • (b) contribute to the achievement of the objectives of the organisation.

58 Role of directors of council-controlled organisations
  • (1) The role of a director of a council-controlled organisation is to assist the organisation to meet its objectives and any other requirements in its statement of intent.

    (2) This section does not limit or affect the other duties that a director of a council-controlled organisation has.

59 Principal objective of council-controlled organisation
  • (1) The principal objective of a council-controlled organisation is to—

    • (a) achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent; and

    • (b) be a good employer; and

    • (c) exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and

    • (d) if the council-controlled organisation is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.

    (2) In subsection (1)(b), good employer has the same meaning as in clause 36 of Schedule 7.

60 Decisions relating to operation of council-controlled organisations
  • All decisions relating to the operation of a council-controlled organisation must be made by, or under the authority of, the board of the organisation in accordance with—

    • (a) its statement of intent; and

    • (b) its constitution.

    Compare: 1974 No 66 s 594R

61 Activities undertaken on behalf of local authorities
  • Nothing in this Part restricts or limits the application of section 17A to any arrangement or agreement under which a council-controlled organisation undertakes any responsibility on behalf of a local authority, irrespective of whether the local authority is a shareholder of the council-controlled organisation.

    Section 61: replaced, on 8 August 2014, by section 19 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

62 Prohibition on guarantees, etc
  • A local authority must not give any guarantee, indemnity, or security in respect of the performance of any obligation by a council-controlled trading organisation.

    Compare: 1974 No 66 s 594ZP

63 Restriction on lending to council-controlled trading organisation
  • A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

    Compare: 1974 No 66 s 594ZPA

Statements of intent

64 Statements of intent for council-controlled organisations
  • (1) A council-controlled organisation must have a statement of intent that complies with clauses 9 and 10 of Schedule 8.

    (2) [Repealed]

    (3) [Repealed]

    (4) Schedule 8 applies to statements of intent of council-controlled organisations.

    (5) A statement of intent—

    • (a) must not be inconsistent with the constitution of a council-controlled organisation; and

    • (b) may include and apply to 2 or more related council-controlled organisations.

    (6) Despite this section, an organisation that becomes a council-controlled organisation not more than 6 months before the end of a financial year is not required to prepare a statement of intent for that financial year.

    Section 64(1): amended, on 27 November 2010, by section 7 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 64(2): repealed, on 7 July 2004, by section 4 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 64(3): repealed, on 7 July 2004, by section 4 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 64(6): added, on 28 June 2006, by section 8 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Monitoring and reporting

65 Performance monitoring
  • (1) A local authority that is a shareholder in a council organisation must regularly undertake performance monitoring of that organisation to evaluate its contribution to the achievement of—

    • (a) the local authority's objectives for the organisation; and

    • (b) (if applicable) the desired results, as set out in the organisation's statement of intent; and

    • (c) the overall aims and outcomes of the local authority.

    (2) A local authority must, as soon as practicable after a statement of intent of a council-controlled organisation is delivered to it,—

    • (a) agree to the statement of intent; or

    • (b) if it does not agree, take all practicable steps under clause 5 of Schedule 8 to require the statement of intent to be modified.

    Section 65(1)(b): amended, on 7 July 2004, by section 5(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 65(2): amended, on 7 July 2004, by section 5(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 65(2)(a): amended, on 7 July 2004, by section 5(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

66 Half-yearly report
  • (1) Within 2 months after the end of the first half of each financial year, the board of a council-controlled organisation must deliver to the shareholders a report on the organisation's operations during that half year.

    (2) The report must include the information required to be included by its statement of intent.

    Compare: 1974 No 66 s 594Z

67 Annual report
  • (1) Within 3 months after the end of each financial year, the board of a council-controlled organisation must deliver to the shareholders, and make available to the public, a report on the organisation's operations during that year.

    (2) The report must include the information required to be included by—

    • (b) its statement of intent.

    (3) [Repealed]

    Section 67(3): repealed, on 7 July 2004, by section 6 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

68 Content of reports on operations of council-controlled organisations
  • A report on the operations of a council-controlled organisation under section 67 must—

    • (a) contain the information that is necessary to enable an informed assessment of the operations of that organisation and its subsidiaries, including—

      • (i) a comparison of the performance of the organisation and its subsidiaries with the statement of intent; and

      • (ii) an explanation of any material variances between that performance and the statement of intent; and

    • (b) state the dividend, if any, authorised to be paid or the maximum dividend proposed to be paid by that organisation for its equity securities (other than fixed interest securities) for the financial year to which the report relates.

    Compare: 1974 No 66 s 594Z

69 Financial statements and auditor's report
  • (1) A report on the operations of a council-controlled organisation under section 67 must include—

    • (a) audited consolidated financial statements for that financial year for that organisation and its subsidiaries; and

    • (b) an auditor's report on—

      • (i) those financial statements; and

      • (ii) the performance targets and other measures by which performance was judged in relation to that organisation's objectives.

    (2) The audited financial statements under subsection (1)(a) must be prepared in accordance with generally accepted accounting practice.

    Compare: 1974 No 66 s 594Z

70 Auditor-General is auditor of council-controlled organisations
  • Despite sections 207P to 207V of the Companies Act 1993, a council-controlled organisation or a subsidiary of a council-controlled organisation is a public entity as defined in section 4 of the Public Audit Act 2001 and, in accordance with that Act, the Auditor-General is its auditor.

    Compare: 1974 No 66 s 594ZC

    Section 70: amended, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

71 Protection from disclosure of sensitive information
  • Nothing in this Act requires the inclusion in any statement of intent, annual report, financial statement, or half-yearly report required to be produced under this Act by a council-controlled organisation of any information that may be properly withheld if a request for that information were made under the Local Government Official Information and Meetings Act 1987.

    Compare: 1974 No 66 s 594ZA

71A Application of Part to listed companies
  • (1) This section applies to a council-controlled organisation if the shares of any of the following are listed on a stock exchange:

    • (a) the council-controlled organisation:

    • (b) a holding company of the council-controlled organisation:

    • (c) controlling companies of the council-controlled organisation.

    (2) If subsection (1) applies, the council-controlled organisation is not required to—

    • (b) deliver a half-yearly report under section 66:

    (3) In this section,—

    controlling companies means 2 or more companies whose degree of control over a council-controlled organisation, if exercisable by one notional company, would make the notional company a holding company of the council-controlled organisation

    holding company has the same meaning as in section 5 of the Companies Act 1993.

    Section 71A: inserted, on 7 July 2004, by section 7 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

72 Application of Act to related companies
  • Sections 57 to 71 apply to a company as if it were a council-controlled organisation if the company is a related company (within the meaning of section 2(3) and (4) of the Companies Act 1993) of a council-controlled organisation.

    Section 72: substituted, on 7 July 2004, by section 8 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Transfer of undertakings

73 Transfer of undertakings to council-controlled organisations
  • Schedule 9 applies to the transfer of an existing undertaking to a council-controlled organisation.

Application of Local Government Official Information and Meetings Act 1987 and Ombudsmen Act 1975 to council-controlled organisations

74 Official information
  • (1) Parts 1 to 6 of the Local Government Official Information and Meetings Act 1987 apply to a council-controlled organisation as if that organisation were a local authority.

    (2) The Ombudsmen Act 1975 applies to a council-controlled organisation as if that organisation were listed in Part 3 of Schedule 1 of that Act.

Part 6
Planning, decision-making, and accountability

75 Outline of Part
  • This Part—

    • (a) sets out obligations of local authorities in relation to the making of decisions:

    • (b) states the obligations of local authorities in relation to the involvement of Māori in decision-making processes:

    • (c) states the obligations of local authorities in relation to consultation with interested and affected persons:

    • (d) sets out the nature and use of the special consultative procedure:

    • (e) [Repealed]

    • (f) prescribes the processes and general content of the long-term plan, the annual plan, and the annual report (all of which are prescribed in more detail in Schedule 10):

    • (g) prescribes the obligations of local authorities in relation to financial management:

    • (h) provides for borrowing by local authorities.

    Section 75(e): repealed, on 27 November 2010, by section 8 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 75(f): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 1Planning and decision-making

Significance and engagement policy

  • Heading: inserted, on 8 August 2014, by section 20 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

76AA Significance and engagement policy
  • (1) Every local authority must adopt a policy setting out—

    • (a) that local authority's general approach to determining the significance of proposals and decisions in relation to issues, assets, and other matters; and

    • (b) any criteria or procedures that are to be used by the local authority in assessing the extent to which issues, proposals, assets, decisions, or activities are significant or may have significant consequences; and

    • (c) how the local authority will respond to community preferences about engagement on decisions relating to specific issues, assets, or other matters, including the form of consultation that may be desirable; and

    • (d) how the local authority will engage with communities on other matters.

    (2) The purpose of the policy is—

    • (a) to enable the local authority and its communities to identify the degree of significance attached to particular issues, proposals, assets, decisions, and activities; and

    • (b) to provide clarity about how and when communities can expect to be engaged in decisions about different issues, assets, or other matters; and

    • (c) to inform the local authority from the beginning of a decision-making process about—

      • (i) the extent of any public engagement that is expected before a particular decision is made; and

      • (ii) the form or type of engagement required.

    (3) The policy adopted under subsection (1) must list the assets considered by the local authority to be strategic assets.

    (4) A policy adopted under subsection (1) may be amended from time to time.

    (5) When adopting or amending a policy under this section, the local authority must consult in accordance with section 82 unless it considers on reasonable grounds that it has sufficient information about community interests and preferences to enable the purpose of the policy to be achieved.

    (6) To avoid doubt, section 80 applies when a local authority deviates from this policy.

    Section 76AA: inserted, on 8 August 2014, by section 20 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Decision-making

76 Decision-making
  • (1) Every decision made by a local authority must be made in accordance with such of the provisions of sections 77, 78, 80, 81, and 82 as are applicable.

    (2) Subsection (1) is subject, in relation to compliance with sections 77 and 78, to the judgments made by the local authority under section 79.

    (3) A local authority—

    • (a) must ensure that, subject to subsection (2), its decision-making processes promote compliance with subsection (1); and

    • (b) in the case of a significant decision, must ensure, before the decision is made, that subsection (1) has been appropriately observed.

    (4) For the avoidance of doubt, it is declared that, subject to subsection (2), subsection (1) applies to every decision made by or on behalf of a local authority, including a decision not to take any action.

    (5) Where a local authority is authorised or required to make a decision in the exercise of any power, authority, or jurisdiction given to it by this Act or any other enactment or by any bylaws, the provisions of subsections (1) to (4) and the provisions applied by those subsections, unless inconsistent with specific requirements of the Act, enactment, or bylaws under which the decision is to be made, apply in relation to the making of the decision.

    (6) This section and the sections applied by this section do not limit any duty or obligation imposed on a local authority by any other enactment.

77 Requirements in relation to decisions
  • (1) A local authority must, in the course of the decision-making process,—

    • (a) seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

    • (b) assess the options in terms of their advantages and disadvantages; and

    • (c) if any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, waahi tapu, valued flora and fauna, and other taonga.

    (2) This section is subject to section 79.

    Section 77(1)(b): replaced, on 8 August 2014, by section 21 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

78 Community views in relation to decisions
  • (1) A local authority must, in the course of its decision-making process in relation to a matter, give consideration to the views and preferences of persons likely to be affected by, or to have an interest in, the matter.

    (2) [Repealed]

    (3) A local authority is not required by this section alone to undertake any consultation process or procedure.

    (4) This section is subject to section 79.

    Section 78(2): repealed, on 27 November 2010, by section 9 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

79 Compliance with procedures in relation to decisions
  • (1) It is the responsibility of a local authority to make, in its discretion, judgments—

    • (a) about how to achieve compliance with sections 77 and 78 that is largely in proportion to the significance of the matters affected by the decision as determined in accordance with the policy under section 76AA; and

    • (b) about, in particular,—

      • (i) the extent to which different options are to be identified and assessed; and

      • (ii) the degree to which benefits and costs are to be quantified; and

      • (iii) the extent and detail of the information to be considered; and

      • (iv) the extent and nature of any written record to be kept of the manner in which it has complied with those sections.

    (2) In making judgments under subsection (1), a local authority must have regard to the significance of all relevant matters and, in addition, to—

    • (b) the extent of the local authority's resources; and

    • (c) the extent to which the nature of a decision, or the circumstances in which a decision is taken, allow the local authority scope and opportunity to consider a range of options or the views and preferences of other persons.

    (3) The nature and circumstances of a decision referred to in subsection (2)(c) include the extent to which the requirements for such decision-making are prescribed in or under any other enactment (for example, the Resource Management Act 1991).

    (4) Subsection (3) is for the avoidance of doubt.

    Section 79(1)(a): amended, on 8 August 2014, by section 22 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 79(3): added, on 7 July 2004, by section 9 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 79(4): added, on 7 July 2004, by section 9 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

80 Identification of inconsistent decisions
  • (1) If a decision of a local authority is significantly inconsistent with, or is anticipated to have consequences that will be significantly inconsistent with, any policy adopted by the local authority or any plan required by this Act or any other enactment, the local authority must, when making the decision, clearly identify—

    • (a) the inconsistency; and

    • (b) the reasons for the inconsistency; and

    • (c) any intention of the local authority to amend the policy or plan to accommodate the decision.

    (2) Subsection (1) does not derogate from any other provision of this Act or of any other enactment.

81 Contributions to decision-making processes by Māori
  • (1) A local authority must—

    • (a) establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority; and

    • (b) consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority; and

    • (c) provide relevant information to Māori for the purposes of paragraphs (a) and (b).

    (2) A local authority, in exercising its responsibility to make judgments about the manner in which subsection (1) is to be complied with, must have regard to—

    • (a) the role of the local authority, as set out in section 11; and

    • (b) such other matters as the local authority considers on reasonable grounds to be relevant to those judgments.

Consultation

82 Principles of consultation
  • (1) Consultation that a local authority undertakes in relation to any decision or other matter must be undertaken, subject to subsections (3) to (5), in accordance with the following principles:

    • (a) that persons who will or may be affected by, or have an interest in, the decision or matter should be provided by the local authority with reasonable access to relevant information in a manner and format that is appropriate to the preferences and needs of those persons:

    • (b) that persons who will or may be affected by, or have an interest in, the decision or matter should be encouraged by the local authority to present their views to the local authority:

    • (c) that persons who are invited or encouraged to present their views to the local authority should be given clear information by the local authority concerning the purpose of the consultation and the scope of the decisions to be taken following the consideration of views presented:

    • (d) that persons who wish to have their views on the decision or matter considered by the local authority should be provided by the local authority with a reasonable opportunity to present those views to the local authority in a manner and format that is appropriate to the preferences and needs of those persons:

    • (e) that the views presented to the local authority should be received by the local authority with an open mind and should be given by the local authority, in making a decision, due consideration:

    • (f) that persons who present views to the local authority should have access to a clear record or description of relevant decisions made by the local authority and explanatory material relating to the decisions, which may include, for example, reports relating to the matter that were considered before the decisions were made.

    (2) A local authority must ensure that it has in place processes for consulting with Māori in accordance with subsection (1).

    (3) The principles set out in subsection (1) are, subject to subsections (4) and (5), to be observed by a local authority in such manner as the local authority considers, in its discretion, to be appropriate in any particular instance.

    (4) A local authority must, in exercising its discretion under subsection (3), have regard to—

    • (b) the extent to which the current views and preferences of persons who will or may be affected by, or have an interest in, the decision or matter are known to the local authority; and

    • (c) the nature and significance of the decision or matter, including its likely impact from the perspective of the persons who will or may be affected by, or have an interest in, the decision or matter; and

    • (d) the provisions of Part 1 of the Local Government Official Information and Meetings Act 1987 (which Part, among other things, sets out the circumstances in which there is good reason for withholding local authority information); and

    • (e) the costs and benefits of any consultation process or procedure.

    (5) Where a local authority is authorised or required by this Act or any other enactment to undertake consultation in relation to any decision or matter and the procedure in respect of that consultation is prescribed by this Act or any other enactment, such of the provisions of the principles set out in subsection (1) as are inconsistent with specific requirements of the procedure so prescribed are not to be observed by the local authority in respect of that consultation.

    Section 82(1)(f): replaced, on 8 August 2014, by section 23 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

82A Information requirements for consultation required under this Act
  • (1) This section applies if this Act requires a local authority to consult in accordance with, or using a process or a manner that gives effect to, the requirements of section 82.

    (2) The local authority must, for the purposes of section 82(1)(a) and (c), make the following publicly available:

    • (a) the proposal and the reasons for the proposal; and

    • (b) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1); and

    • (c) if a plan or policy or similar document is proposed to be adopted, a draft of the proposed plan, policy, or other document; and

    • (d) if a plan or policy or similar document is proposed to be amended, details of the proposed changes to the plan, policy, or other document.

    (3) In the case of consultation on an annual plan under section 95(2), instead of complying with subsection (2), the local authority must prepare and adopt a consultation document that complies with section 95A.

    (4) Nothing in this section applies where the special consultative procedure under section 83 is required to be used.

    (5) Nothing in this section limits the application of section 82.

    Section 82A: inserted, on 8 August 2014, by section 24 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

83 Special consultative procedure
  • (1) Where this Act or any other enactment requires a local authority to use or adopt the special consultative procedure, that local authority must—

    • (a) prepare and adopt—

      • (i) a statement of proposal; and

      • (ii) if the local authority considers on reasonable grounds that it is necessary to enable public understanding of the proposal, a summary of the information contained in the statement of proposal (which summary must comply with section 83AA); and

    • (b)  ensure that the following is publicly available:

      • (i) the statement of proposal; and

      • (ii) a description of how the local authority will provide persons interested in the proposal with an opportunity to present their views to the local authority in accordance with section 82(1)(d); and

      • (iii) a statement of the period within which views on the proposal may be provided to the local authority (the period being not less than 1 month from the date the statement is issued); and

    • (c) make the summary of the information contained in the statement of proposal prepared in accordance with paragraph (a)(ii) (or the statement of proposal, if a summary is not prepared) as widely available as is reasonably practicable as a basis for consultation; and

    • (d) provide an opportunity for persons to present their views to the local authority in a manner that enables spoken (or New Zealand sign language) interaction between the person and the local authority, or any representatives to whom an appropriate delegation has been made in accordance with Schedule 7; and

    • (e) ensure that any person who wishes to present his or her views to the local authority or its representatives as described in paragraph (d)—

      • (i) is given a reasonable opportunity to do so; and

      • (ii) is informed about how and when he or she may take up that opportunity.

    (2) For the purpose of, but without limiting, subsection (1)(d), a local authority may allow any person to present his or her views to the local authority by way of audio link or audiovisual link.

    (3) This section does not prevent a local authority from requesting or considering, before making a decision, comment or advice from an officer of the local authority or any other person in respect of the proposal or any views on the proposal, or both.

    Section 83: replaced, on 8 August 2014, by section 25 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

83AA Summary of information
  • A summary of the information contained in a statement of proposal must—

    • (a) be a fair representation of the major matters in the statement of proposal; and

    • (b) be in a form determined by the local authority; and

    • (c) indicate where the statement of proposal is available; and

    • (d) state the period within which persons interested in the proposal may present their views to the local authority.

    Section 83AA: inserted, on 8 August 2014, by section 25 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

83A Combined or concurrent consultation
  • (1) Where this Act or any other enactment requires a local authority to use or adopt the special consultative procedure in relation to any decision or matter, it may (but is not required to) carry out the consultation at the same time as, or combined with, any other special consultative procedure that it is required to carry out under this or any other enactment.

    (2) This section—

    • (a) applies except to the extent that this Act or any other enactment expressly provides otherwise; and

    • (b) is for the avoidance of doubt.

    Section 83A: inserted, on 7 July 2004, by section 10 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

84 Special consultative procedure in relation to long-term plan
  • [Repealed]

    Section 84: repealed, on 8 August 2014, by section 26 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

85 Use of special consultative procedure in relation to annual plan
  • [Repealed]

    Section 85: repealed, on 8 August 2014, by section 27 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

86 Use of special consultative procedure in relation to making, amending, or revoking bylaws
  • (1) This section applies if, in accordance with section 156(1)(a), the special consultative procedure is required to be used in relation to the making, amending, or revoking of a bylaw.

    (2) The statement of proposal referred to in section 83(1)(a) must include,—

    • (a) as the case may be,—

      • (i) a draft of the bylaw as proposed to be made or amended; or

      • (ii) a statement that the bylaw is to be revoked; and

    • (b) the reasons for the proposal; and

    • (c) a report on any relevant determinations by the local authority under section 155.

    Section 86: replaced, on 8 August 2014, by section 28 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

87 Other use of special consultative procedure
  • (1) This section applies in any case where—

    • (a) neither section 86 nor 93A applies but a local authority is required to use or adopt the special consultative procedure; or

    • (b) a local authority chooses to use the special consultative procedure.

    (2) In any case to which this section applies, the statement of proposal referred to in section 83(1)(a) is,—

    • (a) if a plan or policy or similar document is proposed to be adopted, a draft of the proposed plan, policy, or document; and

    • (b) in any other case, a detailed statement of the proposal.

    (3) A statement of proposal under subsection (2)(b) must include—

    • (a) a statement of the reasons for the proposal; and

    • (b) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1); and

    • (c) any other information that the local authority identifies as relevant.

    Section 87(1)(a): amended, on 8 August 2014, by section 75 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

88 Use of special consultative procedure in relation to change of mode of delivery of significant activity
  • [Repealed]

    Section 88: repealed, on 27 November 2010, by section 12 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

89 Summary of information
  • [Repealed]

    Section 89: repealed, on 8 August 2014, by section 29 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

90 Policy on significance
  • [Repealed]

    Section 90: repealed, on 8 August 2014, by section 29 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Community outcomes

[Repealed]

  • Heading: repealed, on 27 November 2010, by section 13 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

91 Process for identifying community outcomes
  • [Repealed]

    Section 91: repealed, on 27 November 2010, by section 13 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

92 Obligation to report against community outcomes
  • [Repealed]

    Section 92: repealed, on 27 November 2010, by section 13 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Planning

93 Long-term plan
  • (1) A local authority must, at all times, have a long-term plan under this section.

    (2) A local authority must use the special consultative procedure in adopting a long-term plan.

    (3) A long-term plan must be adopted before the commencement of the first year to which it relates, and continues in force until the close of the third consecutive year to which it relates.

    (4) A local authority may amend a long-term plan at any time.

    (5) A local authority must use the special consultative procedure in making any amendment to a long-term plan.

    (6) The purpose of a long-term plan is to—

    • (a) describe the activities of the local authority; and

    • (b) describe the community outcomes of the local authority's district or region; and

    • (c) provide integrated decision-making and co-ordination of the resources of the local authority; and

    • (d) provide a long-term focus for the decisions and activities of the local authority; and

    • (e) provide a basis for accountability of the local authority to the community.

    • (f) [Repealed]

    (7) A long-term plan adopted under this section must—

    • (a) cover a period of not less than 10 consecutive financial years; and

    • (b) include the information required by Part 1 of Schedule 10.

    (8) A local authority must, in complying with the requirements of this Act in relation to the preparation and adoption of a long-term plan, act in such manner, and include in that plan such detail, as the local authority considers on reasonable grounds to be appropriate.

    (9) A local authority must, in deciding what is appropriate for the purposes of subsection (8), have regard to—

    • (b) the significance of any matter; and

    • (c) the extent of the local authority's resources.

    (10) A local authority must, within 1 month after the adoption of its long-term plan,—

    • (a) make its long-term plan publicly available; and

    • (b) send copies of that plan to—

      • (i) the Secretary; and

      • (ii) the Auditor-General; and

      • (iii) the Parliamentary Library.

    Section 93 heading: amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(1): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(3): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(4): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(5): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(6): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(6)(e): amended, on 8 August 2014, by section 30(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 93(6)(f): repealed, on 8 August 2014, by section 30(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 93(7): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(8): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(9): amended, on 7 July 2004, by section 12 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 93(10): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 93(10)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

93A Use of special consultative procedure in relation to long-term plan
  • (1) Where the special consultative procedure is used in relation to the adoption or amendment of a long-term plan under section 93

    • (a) for the purpose of section 83(1)(a), instead of a statement of proposal and a summary of the information contained in the statement of proposal, a consultation document must be prepared and adopted in accordance with sections 93B to 93G; and

    • (b) section 83 applies as if references to “the statement of proposal” or “the proposal” or a “summary” were references to the consultation document.

    (2) To avoid doubt, a draft long-term plan must not be used as an alternative to the consultation document.

    Section 93A: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93B Purpose of consultation document for long-term plan
  • The purpose of the consultation document is to provide an effective basis for public participation in local authority decision-making processes relating to the content of a long-term plan by—

    • (a) providing a fair representation of the matters that are proposed for inclusion in the long-term plan, and presenting these in a way that—

      • (i) explains the overall objectives of the proposals, and how rates, debt, and levels of service might be affected; and

      • (ii) can be readily understood by interested or affected people; and

    • (b) identifying and explaining to the people of the district or region, significant and other important issues and choices facing the local authority and district or region, and the consequences of those choices; and

    • (c) informing discussions between the local authority and its communities about the matters in paragraphs (a) and (b).

    Section 93B: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93C Content of consultation document for adoption of long-term plan
  • (1) The content of the consultation document for the adoption of a long-term plan must be such as the local authority considers on reasonable grounds will achieve the purpose set out in section 93B.

    (2) Without limiting subsection (1), the consultation document must describe—

    • (a) each issue that the local authority determines should be included having had regard to—

      • (i) the significance and engagement policy adopted under section 76AA; and

      • (ii) the importance of other matters to the district and its communities; and

    • (b) for each issue identified under paragraph (a),—

      • (i) the principal options for addressing the issue and the implications (including financial implications) of each of those options; and

      • (ii) the local authority's proposal, if any, for addressing the issue; and

      • (iii) the likely consequences of proceeding with the proposal on the local authority's rates, debt, and levels of service; and

    • (c) other matters of public interest relating to—

      • (i) the proposed content of the local authority’s financial strategy (under section 101A) including, without limitation, the quantified limits on rates, rates increases, and borrowing in that strategy; and

      • (ii) the proposed content of the local authority’s infrastructure strategy (under section 101B); and

    • (d) any significant changes that are proposed to the way the local authority funds its operating and capital expenditure requirements, including changes to the rating system described in clause 15(3) and (4) of Schedule 10; and

    • (e) using graphs or charts, the direction and scale of changes to the local authority’s rates and debt levels that will result from the proposed content of the long-term plan; and

    • (f) using graphs or charts where practicable, the direction and nature of changes to the local authority’s levels of service associated with the proposed content of the long-term plan; and

    • (g) the impact of proposals on the rates assessed on different categories of rateable land with a range of property values, by the provision of examples as provided for in clause 15(5) of Schedule 10.

    (3) The consultation document—

    • (a) must be presented in as concise and simple a manner as is consistent with section 93B and this section; and

    • (b) without limiting paragraph (a), must not contain, or have attached to it,—

      • (i) a draft of the long-term plan, as proposed to be adopted; or

      • (ii) a full draft of any policy; or

      • (iii) a full draft of the local authority’s financial strategy or infrastructure strategy; or

      • (iv) any detailed information, whether described in Part 1 of Schedule 10 or otherwise, that is not necessary or desirable for the purposes of subsections (1) and (2); and

    • (c) must state where members of the public may obtain information adopted by the local authority under section 93G, which may include, for example, providing links or references to the relevant documents on an Internet site maintained by or on behalf of the local authority; and

    • (d) may be given the title of the local authority’s choice, provided that the title or subtitle make reference to this being a consultation document for the proposed long-term plan for the relevant years.

    (4) The consultation document must contain a report from the Auditor-General on—

    • (a) whether the consultation document gives effect to the purpose set out in section 93B; and

    • (b) the quality of the information and assumptions underlying the information provided in the consultation document.

    (5) The report under subsection (4) must not comment on the merits of any policy content of the consultation document.

    Section 93C: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93D Content of consultation document for amendment of long-term plan
  • (1) The content of the consultation document for the amendment of a long-term plan must be such as the local authority considers on reasonable grounds will achieve the purpose set out in section 93B.

    (2) Without limiting subsection (1), the consultation document for an amendment to the long-term plan must include—

    • (a) a description of the proposed amendment:

    • (b) the reasons for the proposed amendment:

    • (c) the implications (including financial implications) of the proposed amendment:

    • (d) any alternatives to the proposed amendment that the local authority may wish to discuss with its communities.

    (3) The consultation document—

    • (a) may have attached to it a copy of the proposed amendment to the long-term plan, if the local authority considers that the full copy of that proposed amendment will assist people to understand the amendment; but

    • (b) in any other case, must state where a copy of the proposed amendment to the long-term plan may be obtained.

    (4) The consultation document must contain a report from the Auditor-General on—

    • (a) whether the consultation document gives effect to the purpose set out in section 93B; and

    • (b) the quality of the information and assumptions underlying the information provided in the consultation document.

    (5) The report under subsection (4) must not comment on the merits of any policy content of the consultation document.

    Section 93D: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93E Additional content of consultation document for adoption or amendment of long-term plan where section 97 applies to proposed decision
  • If a consultation document under section 93C or 93D relates to a proposal to provide for the making of a decision to which section 97 applies, that consultation document must include—

    • (a) the details of the proposed decision:

    • (b) the reasons for the proposed decision:

    • (c) an analysis of the reasonably practicable options, including the proposal, identified under section 77(1):

    • (d) in respect of a proposal to transfer ownership or control of a strategic asset from the local authority to any other person,—

      • (i) a description of any accountability or monitoring arrangements to be used to assess the performance of that person and any other person in regard to the asset; and

      • (ii) an assessment of whether there are any conflicts of interest arising from the proposed transfer of the control or ownership of the asset, and, if so, what they are and how they will be managed.

    Section 93E: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93F Form and manner of presentation of consultation document
  • The local authority must ensure that the contents of the consultation document are presented in a form and manner that enables the consultation document to achieve its purpose.

    Section 93F: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

93G Information to be adopted by local authority in relation to long-term plan and consultation document
  • Before adopting a consultation document under section 93A, the local authority must prepare and adopt the information that—

    • (a) is relied on by the content of the consultation document adopted under section 93A; and

    • (b) is necessary to enable the Auditor-General to give the reports required by sections 93C(4) and 93D(4); and

    • (c) provides the basis for the preparation or amendment of the long-term plan.

    Section 93G: inserted, on 8 August 2014, by section 31 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

94 Audit of long-term plan
  • (1) The long-term plan must contain a report from the Auditor-General on—

    • (a) whether the plan gives effect to the purpose set out in section 93(6); and

    • (b) the quality of the information and assumptions underlying the forecast information provided in the plan.

    • (c) [Repealed]

    (2) In the case of an amended long-term plan, the report under subsection (1) must contain a report by the Auditor-General confirming or amending the report made when the long-term plan was adopted.

    (3) A report under subsection (1) must not comment on the merits of any policy content of the plan.

    Section 94 heading: amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 94(1): amended, on 5 December 2012, by section 27(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 94(1): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 94(1)(a): replaced, on 8 August 2014, by section 32(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 94(1)(b): amended, on 27 November 2010, by section 14(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 94(1)(c): repealed, on 27 November 2010, by section 14(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 94(2): replaced, on 8 August 2014, by section 32(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 94(3): amended, on 8 August 2014, by section 32(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

95 Annual plan
  • (1) A local authority must prepare and adopt an annual plan for each financial year.

    (2) Subject to subsection (2A), a local authority must consult in a manner that gives effect to the requirements of section 82 before adopting an annual plan under this section.

    (2A) Subsection (2) does not apply if the proposed annual plan does not include significant or material differences from the content of the long-term plan for the financial year to which the proposed annual plan relates.

    (3) An annual plan must be adopted before the commencement of the year to which it relates.

    (4) Despite subsection (1), for the first year to which a long-term plan under section 93 relates, the financial statement and funding impact statement included in that long-term plan in relation to that year must be regarded as the annual plan adopted by the local authority for that year.

    (5) The purpose of an annual plan is to—

    • (a) contain the proposed annual budget and funding impact statement for the year to which the annual plan relates; and

    • (b) identify any variation from the financial statements and funding impact statement included in the local authority's long-term plan in respect of the year; and

    • (c) provide integrated decision making and co-ordination of the resources of the local authority; and

    • (d) contribute to the accountability of the local authority to the community.

    • (e) [Repealed]

    (6) Each annual plan adopted under this section must—

    • (a) be prepared in accordance with the principles and procedures that apply to the preparation of the financial statements and funding impact statement included in the long-term plan; and

    • (b) contain appropriate references to the long-term plan in which the local authority's activities for the financial year covered by the annual plan are set out; and

    • (c) include the information required by Part 2 of Schedule 10.

    (6A) Except where subsection (5) requires otherwise, the local authority must comply with subsection (6)(b) and (c) by means of reference to, rather than duplication of, the long-term plan.

    (7) A local authority must, within 1 month after the adoption of its annual plan,—

    • (a) make its annual plan publicly available; and

    • (b) send copies of that plan to—

      • (i) the Secretary; and

      • (ii) the Auditor-General; and

      • (iii) the Parliamentary Library.

    Compare: 1974 No 66 s 223D(1), (3)–(5), (7)–(8)

    Section 95(2): replaced, on 8 August 2014, by section 33(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 95(2A): inserted, on 8 August 2014, by section 33(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 95(4): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 95(5)(b): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 95(5)(c): replaced, on 8 August 2014, by section 33(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 95(5)(d): amended, on 8 August 2014, by section 33(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 95(5)(e): repealed, on 8 August 2014, by section 33(4) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 95(6)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 95(6)(b): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 95(6A): inserted, on 8 August 2014, by section 33(5) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

95A Purpose and content of consultation document for annual plan
  • (1) The purpose of the consultation document under section 82A(3) is to provide a basis for effective public participation in decision-making processes relating to the activities to be undertaken by the local authority in the coming year, and the effects of those activities on costs and funding, as proposed for inclusion in the annual plan, by—

    • (a) identifying significant or material differences between the proposed annual plan and the content of the long-term plan for the financial year to which the annual plan relates; and

    • (b) explaining the matters in paragraph (a) in a way that can be readily understood by interested or affected people; and

    • (c) informing discussions between the local authority and its communities about the matters in paragraph (a).

    (2) The content of the consultation document must be such as the local authority considers on reasonable grounds will achieve the purpose set out in subsection (1), and must—

    • (a) explain identified differences, if any, between the proposed annual plan and what is described in the long-term plan in relation to the financial year to which the annual plan relates, including (but not limited to)—

      • (i) an explanation of any significant or material variations or departures from the financial statements or the funding impact statement; and

      • (ii) a description of significant new spending proposals, the costs associated with those proposals, and how these costs will be met; and

      • (iii) an explanation of any proposal to substantially delay, or not proceed with, a significant project, and the financial and service delivery implications of the proposal; and

    • (b) outline the expected consequences of proceeding with the matters referred to in paragraph (a), including the implications for the local authority’s financial strategy.

    (3) The consultation document—

    • (a) must be presented in as concise and simple a manner as is consistent with this section; and

    • (b) without limiting paragraph (a), must not contain, or have attached to it—

      • (i) a draft of the annual plan as proposed to be adopted; or

      • (ii) a full draft of any policy; or

      • (iii) any detailed information, whether described in Part 2 of Schedule 10 or otherwise, that is not necessary or desirable for the purposes of subsections (1) and (2); and

    • (c) must state where members of the public may obtain the information held by the local authority that is relied on by the content of the consultation document, including by providing links or references to the relevant information on an Internet site maintained by or on behalf of the local authority; and

    • (d) may be given the title of the local authority’s choice, provided that the title or subtitle make reference to this being a consultation document for the proposed annual plan for the relevant year.

    (4) The local authority must adopt the information that is relied on by the content of the consultation document, as referred to in subsection (3)(c), before it adopts the consultation document.

    (5) For the purposes of this section, a difference, variation, or departure is material if it could, itself or in conjunction with other differences, influence the decisions or assessments of those reading or responding to the consultation document.

    Section 95A: inserted, on 8 August 2014, by section 34 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

95B Combined or concurrent consultation on long-term plan and annual plan
  • If a local authority carries out consultation in relation to an amendment to a long-term plan at the same time as, or combined with, consultation on an annual plan,—

    • (a) the content of consultation documents required under any of sections 93D, 93E, and 95A, as the case may be, for each consultation process must be combined into 1 consultation document; and

    • (b) the special consultative procedure must be used in relation to both matters.

    Section 95B: inserted, on 8 August 2014, by section 34 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

96 Effect of resolution adopting long-term plan or annual plan
  • (1) The effect of a long-term plan and an annual plan adopted by a local authority is to provide a formal and public statement of the local authority's intentions in relation to the matters covered by the plan.

    (2) A resolution to adopt a long-term plan or an annual plan does not constitute a decision to act on any specific matter included within the plan.

    (3) Subject to section 80, and except as provided in section 97, a local authority may make decisions that are inconsistent with the contents of any long-term plan or annual plan.

    (4) No person is entitled to require a local authority to implement the provisions of a long-term plan or an annual plan.

    (5) This section applies subject to Part 4A of the Local Government (Rating) Act 2002.

    Section 96 heading: amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 96(1): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 96(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 96(3): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 96(4): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 96(5): added, on 28 June 2006, by section 15(2) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).

97 Certain decisions to be taken only if provided for in long-term plan
  • (1) This section applies to the following decisions of a local authority:

    • (a) a decision to alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the local authority, including a decision to commence or cease any such activity:

    • (b) a decision to transfer the ownership or control of a strategic asset to or from the local authority.

    • (c) [Repealed]

    • (d) [Repealed]

    (2) A local authority must not make a decision to which this section relates unless—

    • (a) the decision is explicitly provided for in its long-term plan; and

    • (b) the proposal to provide for the decision was included in a consultation document in accordance with section 93E.

    (3) Nothing in this section applies to a decision of a local authority to fund a capital project by lump sum contributions if the local authority has complied with section 117B(3)(c)(i) of the Local Government (Rating) Act 2002.

    Section 97 heading: amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 97(1)(c): repealed, on 27 November 2010, by section 15 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 97(1)(d): repealed, on 27 November 2010, by section 15 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 97(2)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 97(2)(a): amended, on 28 June 2006, by section 10 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 97(2)(b): amended, on 8 August 2014, by section 75 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 97(3): added, on 28 June 2006, by section 15(3) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).

Subpart 2Reporting

98 Annual report
  • (1) A local authority must prepare and adopt in respect of each financial year an annual report containing in respect of that year the information required by Part 3 of Schedule 10.

    (2) The purposes of an annual report are—

    • (a) to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in respect of the year in the long-term plan and the annual plan; and

    • (b) to promote the local authority's accountability to the community for the decisions made throughout the year by the local authority.

    (3) Each annual report must be completed and adopted, by resolution, within 4 months after the end of the financial year to which it relates.

    (4) A local authority must, within 1 month after the adoption of its annual report, make publicly available—

    • (a) its annual report; and

    • (b) a summary of the information contained in its annual report.

    (5) The summary must represent, fairly and consistently, the information regarding the major matters dealt with in the annual report.

    (6) A local authority must, within 1 month after the adoption of its annual report, send copies of that report and of the summary prepared under subsection (4)(b) to—

    • (a) the Secretary; and

    • (b) the Auditor-General; and

    • (c) the Parliamentary Library.

    Compare: 1974 No 66 s 223E(1), (2), (14), (15)(c)

    Section 98(2)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

99 Audit of information in annual report and summary
  • (1) In addition to the information required by Part 3 of Schedule 10, the annual report must contain the Auditor-General's report on—

    • (a) the financial statements referred to in clause 29 of Schedule 10; and

    • (b) the statement about budgeted and actual capital expenditure referred to in clause 24 of Schedule 10; and

    • (c) the funding impact statement referred to in clause 30 of Schedule 10; and

    • (d) the local authority's compliance with the requirements of Schedule 10 that are applicable to the annual report.

    (2) In addition to the information required by section 98(5), the summary required by section 98(4)(b) must contain the Auditor-General's report on whether the summary represents, fairly and consistently, the information regarding the major matters dealt with in the annual report.

    Compare: 1974 No 66 s 223E(8)(a)

    Section 99(1): substituted, on 27 November 2010, by section 16 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 99(1): amended, on 5 December 2012, by section 28 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 99(2): amended, on 5 December 2012, by section 28 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

99A Pre-election report
  • (1) The chief executive of a local authority must prepare a pre-election report containing the information required by clause 36 of Schedule 10.

    (2) However, the chief executive of a local authority that has an ordinarily resident population of fewer than 20 000 people need not comply with clause 36(1)(a) and (2) of Schedule 10 for the financial year ending in the same year as the election.

    (3) Instead of complying with clause 36(1)(a) and (2) of Schedule 10, the chief executive of the local authority referred to in subsection (2) may include in a pre-election report the information set out in clause 37 of Schedule 10.

    (4) The purpose of a pre-election report is to provide information to promote public discussion about the issues facing the local authority.

    (5) A pre-election report must be completed and published no later than the day that is 2 weeks before the nomination day for a triennial general election of members of a local authority under the Local Electoral Act 2001.

    (6) A pre-election report must not contain a statement by, or a photograph of, an elected member of the local authority.

    Section 99A: inserted, on 1 July 2011, by section 17 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 3Financial management

100 Balanced budget requirement
  • (1) A local authority must ensure that each year's projected operating revenues are set at a level sufficient to meet that year's projected operating expenses.

    (2) Despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so, having regard to—

    • (a) the estimated expenses of achieving and maintaining the predicted levels of service provision set out in the long-term plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

    • (b) the projected revenue available to fund the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life; and

    • (c) the equitable allocation of responsibility for funding the provision and maintenance of assets and facilities throughout their useful life; and

    • (d) the funding and financial policies adopted under section 102.

    Section 100(2)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

101 Financial management
  • (1) A local authority must manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.

    (2) A local authority must make adequate and effective provision in its long-term plan and in its annual plan (where applicable) to meet the expenditure needs of the local authority identified in that long-term plan and annual plan.

    (3) The funding needs of the local authority must be met from those sources that the local authority determines to be appropriate, following consideration of,—

    • (a) in relation to each activity to be funded,—

      • (i) the community outcomes to which the activity primarily contributes; and

      • (ii) the distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; and

      • (iii) the period in or over which those benefits are expected to occur; and

      • (iv) the extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and

      • (v) the costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities; and

    • (b) the overall impact of any allocation of liability for revenue needs on the community.

    Compare: 1974 No 66 s 122C(1)(a)–(c), (f)

    Section 101(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 101(3)(b): amended, on 5 December 2012, by section 29 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

101A Financial strategy
  • (1) A local authority must, as part of its long-term plan, prepare and adopt a financial strategy for all of the consecutive financial years covered by the long-term plan.

    (2) The purpose of the financial strategy is to—

    • (a) facilitate prudent financial management by the local authority by providing a guide for the local authority to consider proposals for funding and expenditure against; and

    • (b) provide a context for consultation on the local authority's proposals for funding and expenditure by making transparent the overall effects of those proposals on the local authority's services, rates, debt, and investments.

    (3) The financial strategy must—

    • (a) include a statement of the factors that are expected to have a significant impact on the local authority during the consecutive financial years covered by the strategy, including—

      • (i) the expected changes in population and the use of land in the district or region, and the capital and operating costs of providing for those changes; and

      • (ii) the expected capital expenditure on network infrastructure, flood protection, and flood control works that is required to maintain existing levels of service currently provided by the local authority; and

      • (iii) other significant factors affecting the local authority's ability to maintain existing levels of service and to meet additional demands for services; and

    • (b) include a statement of the local authority's—

      • (i) quantified limits on rates, rate increases, and borrowing; and

      • (ii) assessment of its ability to provide and maintain existing levels of service and to meet additional demands for services within those limits; and

    • (c) specify the local authority's policy on the giving of securities for its borrowing; and

    • (d) specify the local authority's objectives for holding and managing financial investments and equity securities and its quantified targets for returns on those investments and equity securities.

    Section 101A: inserted, on 27 November 2010, by section 18 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 101A(2): replaced, on 8 August 2014, by section 35(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 101A(3): amended, on 8 August 2014, by section 35(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

101B Infrastructure strategy
  • (1) A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30 consecutive financial years.

    (2) The purpose of the infrastructure strategy is to—

    • (a) identify significant infrastructure issues for the local authority over the period covered by the strategy; and

    • (b) identify the principal options for managing those issues and the implications of those options.

    (3) The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to—

    • (a) renew or replace existing assets; and

    • (b) respond to growth or decline in the demand for services reliant on those assets; and

    • (c) allow for planned increases or decreases in levels of service provided through those assets; and

    • (d) maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and

    • (e) provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks.

    (4) The infrastructure strategy must outline the most likely scenario for the management of the local authority’s infrastructure assets over the period of the strategy and, in that context, must—

    • (a) show indicative estimates of the projected capital and operating expenditure associated with the management of those assets—

      • (i) in each of the first 10 years covered by the strategy; and

      • (ii) in each subsequent period of 5 years covered by the strategy; and

    • (b) identify—

      • (i) the significant decisions about capital expenditure the local authority expects it will be required to make; and

      • (ii) when the local authority expects those decisions will be required; and

      • (iii) for each decision, the principal options the local authority expects to have to consider; and

      • (iv) the approximate scale or extent of the costs associated with each decision; and

    • (c) include the following assumptions on which the scenario is based:

      • (i) the assumptions of the local authority about the life cycle of significant infrastructure assets:

      • (ii) the assumptions of the local authority about growth or decline in the demand for relevant services:

      • (iii) the assumptions of the local authority about increases or decreases in relevant levels of service; and

    • (d) if assumptions referred to in paragraph (c) involve a high level of uncertainty,—

      • (i) identify the nature of that uncertainty; and

      • (ii) include an outline of the potential effects of that uncertainty.

    (5) A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan.

    (6) In this section, infrastructure assets includes—

    • (a) existing or proposed assets to be used to provide services by or on behalf of the local authority in relation to the following groups of activities:

      • (i) water supply:

      • (ii) sewerage and the treatment and disposal of sewage:

      • (iii) stormwater drainage:

      • (iv) flood protection and control works:

      • (v) the provision of roads and footpaths; and

    • (b) any other assets that the local authority, in its discretion, wishes to include in the strategy.

    Section 101B: inserted, on 8 August 2014, by section 36 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

102 Funding and financial policies
  • (1) A local authority must, in order to provide predictability and certainty about sources and levels of funding, adopt the funding and financial policies listed in subsection (2).

    (2) The policies are—

    • (a) a revenue and financing policy; and

    • (b) a liability management policy; and

    • (c) an investment policy; and

    • (d) a policy on development contributions or financial contributions; and

    • (e) a policy on the remission and postponement of rates on Māori freehold land; and

    • (f) in the case of a unitary authority for a district that includes 1 or more local board areas, a local boards funding policy.

    (3) A local authority may adopt either or both of the following policies:

    • (a) a rates remission policy:

    • (b) a rates postponement policy.

    (4) A local authority—

    • (a) must consult on a draft policy in a manner that gives effect to the requirements of section 82 before adopting a policy under this section:

    • (b) may amend a policy adopted under this section at any time after consulting on the proposed amendments in a manner that gives effect to the requirements of section 82.

    (5) However, subsection (4) does not apply to—

    • (a) a liability management policy:

    • (b) an investment policy.

    Section 102: substituted, on 27 November 2010, by section 19 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 102(2)(e): amended, on 8 August 2014, by section 37(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 102(2)(f): inserted, on 8 August 2014, by section 37(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 102(4): replaced, on 8 August 2014, by section 37(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

103 Revenue and financing policy
  • (1) A policy adopted under section 102(1) must state—

    • (a) the local authority's policies in respect of the funding of operating expenses from the sources listed in subsection (2); and

    • (b) the local authority's policies in respect of the funding of capital expenditure from the sources listed in subsection (2).

    (2) The sources referred to in subsection (1) are as follows:

    • (a) general rates, including—

      • (i) choice of valuation system; and

      • (ii) differential rating; and

      • (iii) uniform annual general charges:

    • (b) targeted rates:

    • (ba) lump sum contributions:

    • (c) fees and charges:

    • (d) interest and dividends from investments:

    • (e) borrowing:

    • (f) proceeds from asset sales:

    • (g) development contributions:

    • (i) grants and subsidies:

    • (j) any other source.

    (3) A policy adopted under section 102(1) must also show how the local authority has, in relation to the sources of funding identified in the policy, complied with section 101(3).

    (4) If a local authority amends its revenue and financing policy under section 93(4), only a significant amendment to the policy is required to be audited in accordance with sections 93D(4) and 94.

    Compare: 1974 No 66 s 122O

    Section 103(1): amended, on 27 November 2010, by section 20(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 103(2)(ba): inserted, on 28 June 2006, by section 15(4) of the Local Government (Rating) Amendment Act 2006 (2006 No 28).

    Section 103(3): amended, on 27 November 2010, by section 20(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 103(4): added, on 27 November 2010, by section 20(3) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 103(4): amended, on 8 August 2014, by section 75 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

104 Liability management policy
  • A policy adopted under section 102(1) must state the local authority's policies in respect of the management of both borrowing and other liabilities, including—

    • (a) interest rate exposure; and

    • (b) liquidity; and

    • (c) credit exposure; and

    • (d) debt repayment.

    • (e) [Repealed]

    • (f) [Repealed]

    Compare: 1974 No 66 s 122S

    Section 104: amended, on 27 November 2010, by section 21(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 104(d): amended, on 27 November 2010, by section 21(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 104(e): repealed, on 27 November 2010, by section 21(3) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 104(f): repealed, on 27 November 2010, by section 21(3) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

105 Investment policy
  • A policy adopted under section 102(1) must state the local authority's policies in respect of investments, including—

    • (a) [Repealed]

    • (b) the mix of investments; and

    • (c) the acquisition of new investments; and

    • (d) an outline of the procedures by which investments are managed and reported on to the local authority; and

    • (e) an outline of how risks associated with investments are assessed and managed.

    Compare: 1974 No 66 s 122Q

    Section 105: amended, on 27 November 2010, by section 22(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 105(a): repealed, on 27 November 2010, by section 22(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

106 Policy on development contributions or financial contributions
  • (1) In this section, financial contributions has the meaning given to it by section 108(9) of the Resource Management Act 1991.

    (2) A policy adopted under section 102(1) must, in relation to the purposes for which development contributions or financial contributions may be required,—

    • (a) summarise and explain the total cost of capital expenditure identified in the long-term plan, or identified under clause 1(2) of Schedule 13 that the local authority expects to incur to meet the increased demand for community facilities resulting from growth; and

    • (b) state the proportion of that total cost of capital expenditure that will be funded by—

      • (i) development contributions:

      • (ii) financial contributions:

      • (iii) other sources of funding; and

    • (c) explain, in terms of the matters required to be considered under section 101(3), why the local authority has determined to use these funding sources to meet the expected total cost of capital expenditure referred to in paragraph (a); and

    • (d) identify separately each activity or group of activities for which a development contribution or a financial contribution will be required and, in relation to each activity or group of activities, specify the total amount of funding to be sought by development contributions or financial contributions; and

    • (e) if development contributions will be required, comply with the requirements set out in sections 201 to 202A; and

    • (f) if financial contributions will be required, summarise the provisions that relate to financial contributions in the district plan or regional plan prepared under the Resource Management Act 1991.

    (2A) This section does not prevent a local authority from calculating development contributions over the capacity life of assets or groups of assets for which development contributions are required, so long as—

    • (a) the assets that have a capacity life extending beyond the period covered by the territorial authority’s long-term plan are identified in the development contributions policy; and

    • (b) development contributions per unit of demand do not exceed the maximum amount allowed by section 203.

    (2B) Subject to subsection (2C), a development contribution provided for in a development contributions policy may be increased under the authority of this subsection without consultation, formality, or a review of the development contributions policy.

    (2C) A development contribution may be increased under subsection (2B) only if—

    • (a) the increase does not exceed the result of multiplying together—

      • (i) the rate of increase (if any), in the Producers Price Index Outputs for Construction provided by Statistics New Zealand since the development contribution was last set or increased; and

      • (ii) the proportion of the total costs of capital expenditure to which the development contribution will be applied that does not relate to interest and other financing costs; and

    • (b) before any increase takes effect, the territorial authority makes publicly available information setting out—

      • (i) the amount of the newly adjusted development contribution; and

      • (ii) how the increase complies with the requirements of paragraph (a).

    (3) If development contributions are required, the local authority must keep available for public inspection the full methodology that demonstrates how the calculations for those contributions were made.

    (4) If financial contributions are required, the local authority must keep available for public inspection the provisions of the district plan or regional plan prepared under the Resource Management Act 1991 that relate to financial contributions.

    (5) The places within its district or region at which the local authority must keep the information specified in subsections (3) and (4) available for public inspection are—

    • (a) the principal public office of the local authority; and

    • (b) such other places within its district or region as the local authority considers necessary in order to provide members of the public with reasonable access to the methodology, provisions, or plan.

    (6) A policy adopted under section 102(1) must be reviewed at least once every 3 years using a consultation process that gives effect to the requirements of section 82.

    Section 106(2): amended, on 27 November 2010, by section 23(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 106(2)(a): amended, on 8 August 2014, by section 38(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2)(a): amended, on 8 August 2014, by section 38(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2)(a): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 106(2)(b): amended, on 8 August 2014, by section 38(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2)(c): amended, on 8 August 2014, by section 38(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2)(e): amended, on 8 August 2014, by section 38(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2A): inserted, on 8 August 2014, by section 38(4) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2B): inserted, on 8 August 2014, by section 38(4) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(2C): inserted, on 8 August 2014, by section 38(4) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 106(6): replaced, on 8 August 2014, by section 38(5) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

107 Policy on partnerships with private sector
  • [Repealed]

    Section 107: repealed, on 27 November 2010, by section 24 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

108 Policy on remission and postponement of rates on Māori freehold land
  • (1) If a policy adopted under section 102(1) provides for the remission of rates on Māori freehold land, the policy must state—

    • (a) the objectives sought to be achieved by the remission of rates; and

    • (b) the conditions and criteria to be met in order for rates to be remitted.

    (2) If a policy adopted under section 102(1) provides for the postponement of the requirement to pay rates on Māori freehold land, the policy must state—

    • (a) the objectives sought to be achieved by a postponement of the requirement to pay rates; and

    • (b) the conditions and criteria to be met in order for the requirement to pay rates to be postponed.

    (3) For the avoidance of doubt, a policy adopted under section 102(1) is not required to provide for the remission of, or postponement of the requirement to pay, rates on Māori freehold land.

    (4) In determining a policy under section 102(1), the local authority must consider the matters set out in Schedule 11.

    (4A) A policy adopted under section 102(1) must be reviewed at least once every 6 years using a consultation process that gives effect to the requirements of section 82.

    (5) For the purposes of this section, the term rates includes penalties payable on unpaid rates.

    Section 108(1): amended, on 27 November 2010, by section 25(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 108(2): amended, on 27 November 2010, by section 25(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 108(3): amended, on 27 November 2010, by section 25(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 108(4): amended, on 27 November 2010, by section 25(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 108(4A): replaced, on 8 August 2014, by section 39 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

109 Rates remission policy
  • (1) A policy adopted under section 102(3)(a) must state—

    • (a) the objectives sought to be achieved by the remission of rates; and

    • (b) the conditions and criteria to be met in order for rates to be remitted.

    (2) In determining a policy under section 102(3)(a), the local authority may consider the matters set out in Schedule 11.

    (2A) If a policy is adopted under section 102(3)(a), the policy—

    • (a) must be reviewed at least once every 6 years using a consultation process that gives effect to the requirements of section 82; and

    • (b) may be revoked following the review under paragraph (a).

    (3) For the purposes of this section, the term rates includes penalties payable on unpaid rates.

    Section 109(1): amended, on 27 November 2010, by section 26(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 109(2): amended, on 27 November 2010, by section 26(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 109(2A): inserted, on 27 November 2010, by section 26(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 109(2A)(a): replaced, on 8 August 2014, by section 40 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

110 Rates postponement policy
  • (1) A policy adopted under section 102(3)(b) must state—

    • (a) the objectives sought to be achieved by a postponement of the requirement to pay rates; and

    • (b) the conditions and criteria to be met in order for the requirement to pay rates to be postponed.

    (2) In determining a policy under section 102(3)(b), the local authority may consider the matters set out in Schedule 11.

    (2A) If a policy is adopted under section 102(3)(b), the policy—

    • (a) must be reviewed at least once every 6 years using a consultation process that gives effect to the requirements of section 82; and

    • (b) may be revoked following the review under paragraph (a).

    (3) For the purposes of this section, the term rates includes penalties payable on unpaid rates.

    Section 110(1): amended, on 27 November 2010, by section 27(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 110(2): amended, on 27 November 2010, by section 27(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 110(2A): inserted, on 27 November 2010, by section 27(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 110(2A)(a): replaced, on 8 August 2014, by section 41 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

111 Information to be prepared in accordance with generally accepted accounting practice
  • (1) All information that is required by any provision of this Part or of Schedule 10 to be included in any plan, report, or other document must be prepared in accordance with generally accepted accounting practice if that information is of a form or nature for which generally accepted accounting practice has developed standards.

    (2) Subsection (1) does not apply to the preparation of a funding impact statement.

    Section 111(2): added, on 27 November 2010, by section 28 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 4Borrowing and security

112 Interpretation
  • In this subpart, unless the context otherwise requires,—

    asset of a local authority, in relation to a charge or to charging, includes any revenue, rate, or other right or entitlement of the local authority capable of being subjected to a charge

    borrowing

    • (a) means the incurring by any means of debt to raise money; and

    • (b) includes the incurring of debt—

      • (i) under any contract or arrangement for hire purchase, deferred payment, instalment payment, sale and lease back or buy back, financial lease, loan, overdraft, or other arrangement for obtaining debt finance; or

      • (ii) by the drawing, acceptance, making, endorsement, issue, or sale of bills of exchange, promissory notes, and other negotiable instruments and debt securities; or

      • (iii) by the use, for any purpose, of funds received or invested by the local authority for any other purpose if the local authority has resolved to repay, with or without interest, the funds used; but

    • (c) does not include debt incurred in connection with the hire purchase of goods, the deferred purchase of goods or services, or the giving of credit for the purchase of goods or services if—

      • (i) the period for which the indebtedness is outstanding is less than 91 days and the indebtedness is not incurred again promptly after payment; or

      • (ii) the goods or services are obtained in the ordinary course of the local authority's performance of its lawful responsibilities, on terms and conditions available generally to parties of equivalent credit worthiness, for amounts not exceeding in aggregate an amount—

        • (A) determined by resolution of the local authority as not being so significant as to require specific authorisation; or

        • (B) recorded for the purposes of this subparagraph in the then current borrowing management policy of the local authority—

    and borrow has a corresponding meaning

    charge includes a mortgage, a floating charge, and any other non-possessory security interest deliberately created by the local authority concerned

    incidental arrangement means—

    • (a) a contract or arrangement for the management, reduction, sharing, limiting, assumption, offset, or hedging of financial risks and liabilities in relation to any investment or investments or any loan or loans or other incidental arrangement, whether or not that contract or arrangement involves—

      • (i) the expenditure, borrowing, or lending of money; or

      • (ii) the local authority undertaking to make payments in exchange for another person undertaking to make payments to the local authority; or

      • (iii) the creation or acquisition or disposal of any property or right; or

    • (b) a contract or arrangement with any bank, financial institution, or other person providing for any person to act as underwriter, broker, indemnifier, guarantor, accommodation party, manager, dealer, trustee, registrar, or paying, fiscal, or other agent for, or in connection with, any loan or investment—

    and includes the creation of a charge

    loan includes the amounts raised or indebtedness incurred, as the context may require, as a result of borrowing

    protected transaction means—

    • (a) any deed, agreement, right, or obligation constituting, relating to, or for the purpose of, any borrowing or incidental arrangement; and

    • (b) includes—

      • (i) any charge, guarantee, or security for the payment of any amount (including any loan) payable in relation to, or for the purpose of, any borrowing or incidental arrangement; and

      • (ii) any conveyance or transfer of any property in relation to, or for the purpose of, any borrowing or incidental arrangement.

    Compare: 1974 No 66 ss 122Z, 122ZB, 122ZG(1)

Borrowing

113 Prohibition on borrowing in foreign currency
  • (1) No local authority may borrow or enter into incidental arrangements, within or outside New Zealand, in currency other than New Zealand currency.

    (2) Subsection (1) does not apply to an incidental arrangement in relation to an investment in currency other than New Zealand currency.

    Compare: 1974 No 66 s 122ZC

    Section 113(2): added, on 28 June 2006, by section 12 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

114 Constraints on receiver
  • Every charge given by a local authority over any 1 or more of the assets of the local authority as security for any loan, or the performance of obligations under any incidental arrangement, is subject to subsections (5) and (6) of section 40D of the Receiverships Act 1993.

    Compare: 1974 No 66 s 122ZE(1), (4), (5)

115 Rates as security
  • (1) This section applies if—

    • (a) a local authority has charged a rate or rates revenue as security for any loan or the performance of any obligations under an incidental arrangement; and

    • (b) a receiver has been appointed under section 40A or section 40B of the Receiverships Act 1993 in respect of that loan or arrangement.

    (2) The receiver may, without further authority than this section, assess and collect in each financial year a rate under this section to recover sufficient funds to meet—

    • (a) the payment of the local authority's commitments in respect of the loan or incidental arrangement during that year; and

    • (b) the reasonable costs of administering, assessing, and collecting the rate.

    (3) A rate under this section must be assessed as a uniform rate in the dollar on the rateable value of property—

    • (a) in the district; or

    • (b) if the local authority resolved, at the time when the loan was being raised or the incidental arrangement was being entered into, that it was for the benefit of only a specified part of the district or region, that part.

    (4) For the purposes of this section, rateable value, in relation to any property, means its rateable value under the valuation system used by the local authority for its general rate.

    (5) A rate under this section may not be assessed and collected on rateable property in respect of which an election under section 65 or section 77 of the Rating Powers Act 1988 has been exercised in respect of any repayment loan or the works for which any loan was borrowed.

    Compare: 1974 No 66 ss 122ZE(2), (3), 122ZF

116 Register of charges maintained by local authority
  • (1) A local authority that has any charge over any of its assets must establish and maintain at its principal office a register of, and keep copies of, all instruments specifically affecting any of its property.

    (2) The register referred to in subsection (1) must be available for inspection during ordinary office hours.

    (3) No fee is payable for inspection of the register.

    (4) A local authority may charge for supplying any person with copies of, or any particulars from, the register.

    Compare: 1974 No 66 s 122ZJ

Protected transactions

117 Protected transactions
  • Every protected transaction entered into, or purportedly entered into, by or on behalf of a local authority is valid and enforceable despite—

    • (a) the local authority failing to comply with any provision of this Act in any respect; or

    • (b) the entry into, or performance of, the protected transaction being outside the capacity, rights, or powers of the local authority; or

    • (c) a person held out by the local authority as being a member, employee, agent, or attorney of the local authority—

      • (i) not having been validly appointed as such; or

      • (ii) not having the authority to exercise any power or to do anything either which the person is held out as having or which a person appointed to such a position would customarily have; or

    • (d) a document issued, or purporting to be issued, on behalf of the local authority by a person with actual or customary authority, or held out as having such authority, to issue the document not being valid or not being genuine.

    Compare: 1974 No 66 s 122ZG(2)

118 Certificate of compliance
  • A certificate signed, or purporting to be signed, by the chief executive of a local authority to the effect that the local authority has complied with this Act in connection with a protected transaction is conclusive proof for all purposes that the local authority has so complied.

    Compare: 1974 No 66 s 122ZG(3)

119 Good faith in relation to protected transactions
  • (1) Sections 117 and 118 apply even though a person of the kind referred to in section 117(c) or section 117(d) or section 118 acts fraudulently or forges a document that appears to have been signed on behalf of the local authority, unless the person dealing with the local authority or a person who had acquired property, rights, or interests from the local authority acts in bad faith.

    (2) A person may not rely on section 117 or section 118 in relation to a protected transaction if that person—

    • (a) has dealt in bad faith with a local authority in relation to the protected transaction; or

    • (b) had actual knowledge before the protected transaction was entered into that it was in breach of section 113.

    (3) For the purpose of subsections (1) and (2),—

    • (a) a person is not regarded as acting in bad faith by reason only of the fact that, in relation to any protected transaction, the person knew or ought to have known of the existence of any of the states of affairs referred to in paragraphs (a) to (d) of section 117; and

    • (b) a person must be presumed to have acted in good faith unless the contrary is proved.

    Compare: 1974 No 66 s 122ZG(4)–(6)

120 Saving provision in respect of power of court
  • Nothing in sections 117 to 119 affects the ability of any person to obtain any remedy from a court that has the effect of preventing or restraining temporarily or permanently a local authority from doing any act or thing in the future (other than an act or thing necessary for the performance of a protected transaction that has already been entered into).

Miscellaneous provisions

121 The Crown not liable for debts
  • (1) The Crown is not liable to contribute to the payment of any debts or liabilities of any local authority.

    (2) Subsection (1) does not apply in relation to liability for any sum of a kind described in section 49 of the Public Finance Act 1989.

    Compare: 1974 No 66 s 122ZP(1)

    Section 121(2): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

122 Prospectuses and loan documents to contain statement that the Crown does not guarantee securities or loan
  • (1) If a local authority is named as the issuer or a promoter in any registered prospectus within the meaning of the Securities Act 1978, that prospectus must, unless the securities being offered pursuant to the prospectus are expressly guaranteed by the Crown under the Public Finance Act 1989, contain a statement that the securities being offered pursuant to the prospectus are not guaranteed by the Crown.

    (2) If a local authority enters into any loan agreement or incidental arrangement, that agreement or arrangement must include a statement that the loan or other liability under the incidental arrangement is not guaranteed by the Crown.

    (3) Subsection (2) does not apply in relation to liability for any sum of a kind described in section 49 of the Public Finance Act 1989.

    Compare: 1974 No 66 s 122ZP

    Section 122(3): amended, on 25 January 2005, by section 37(1) of the Public Finance Amendment Act 2004 (2004 No 113).

Part 7
Specific obligations and restrictions on local authorities and other persons

123 Outline of Part
  • This Part contains provisions that set out specific obligations and restrictions on local authorities and other persons as follows:

    • (a) the obligation to assess water and sanitary services and the purpose of those assessments:

    • (b) the obligations and restrictions on local authorities and other persons in relation to the delivery of water services:

    • (c) specific restrictions on disposal of parks, reserves, and endowment properties, including provision for the protection of parks and reserves from disposal:

    • (d) a requirement that, if a public library is provided, the residents of the district must be entitled to free membership.

    Section 123(a): amended, on 8 August 2014, by section 42 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Subpart 1Specific obligations to make assessments of water and sanitary services

124 Interpretation
  • In this Part,—

    assessment means—

    • (a) an assessment of water services and other sanitary services available to communities in the district of the territorial authority; but

    • (b) does not include assessments in relation to individual properties

    local government organisation means a local authority, council-controlled organisation, or a subsidiary of a council-controlled organisation, that provides water services

    sanitary services has the same meaning as sanitary works in section 25(1)(a), (b), (d), (h), and (i) of the Health Act 1956

    wastewater services means sewerage, treatment and disposal of sewage, and stormwater drainage

    water services means water supply and wastewater services

    water supply means the provision of drinking water to communities by network reticulation to the point of supply of each dwellinghouse and commercial premise to which drinking water is supplied.

    Section 124 sanitary services: amended, on 1 July 2009, by section 62(1) of the Waste Minimisation Act 2008 (2008 No 89).

125 Requirement to assess water and other sanitary services
  • (1) A territorial authority must, from time to time, assess the provision within its district of—

    • (a) water services; and

    • (b) other sanitary services.

    (2) One type of service may be assessed in conjunction with another type of service.

    (3) [Repealed]

    Section 125(1): amended, on 27 November 2010, by section 29 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 125(3): repealed, on 8 August 2014, by section 43 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

126 Purpose of assessments
  • The purpose of an assessment under section 125 is to assess, from a public health perspective, the adequacy of water and other sanitary services available to communities within a territorial authority's district, in light of—

    • (a) the health risks to communities arising from any absence of, or deficiency in, water or other sanitary services; and

    • (b) the quality of services currently available to communities within the district; and

    • (c) the current and estimated future demands for such services; and

    • (d) the extent to which drinking water provided by water supply services meets applicable regulatory standards; and

    • (e) the actual or potential consequences of stormwater and sewage discharges within the district.

    Section 126: replaced, on 8 August 2014, by section 44 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

127 Information required in assessment of sanitary services
  • [Repealed]

    Section 127: repealed, on 27 November 2010, by section 30 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

128 Process for making assessments
  • [Repealed]

    Section 128: repealed, on 27 November 2010, by section 30 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

129 Extent of information in assessments
  • [Repealed]

    Section 129: repealed, on 27 November 2010, by section 30 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 2Obligations and restrictions relating to provision of water services

130 Obligation to maintain water services
  • (1) This subpart applies to a local government organisation that provides water services to communities within its district or region—

    • (a) at the commencement of this section:

    • (b) at any time after the commencement of this section.

    (2) A local government organisation to which this section applies must continue to provide water services and maintain its capacity to meet its obligations under this subpart.

    (3) In order to fulfil the obligations under this subpart, a local government organisation must—

    • (a) not use assets of its water services as security for any purpose:

    • (b) not divest its ownership or other interest in a water service except to another local government organisation:

    • (c) not lose control of, sell, or otherwise dispose of, the significant infrastructure necessary for providing water services in its region or district, unless, in doing so, it retains its capacity to meet its obligations:

    • (d) not, in relation to a property to which it supplies water,—

      • (i) restrict the water supply unless section 193 applies; or

      • (ii) stop the water supply unless section 69S of the Health Act 1956 applies.

    (4) This section—

    • (a) does not prevent a local government organisation from transferring a water service to another local government organisation; and

    Section 130(3)(d)(ii): amended, on 27 November 2010, by section 31 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Closure or transfer of small water services

131 Power to close down or transfer small water services
  • (1) Despite section 130(2), a local government organisation may, in relation to a water service that it is no longer appropriate to maintain,—

    • (a) close down the water service; or

    • (b) transfer the water service to an entity representative of the community for which the service is operated.

    (2) A local government organisation must not close down or transfer a water service unless—

    • (a) there are 200 or fewer persons to whom the water service is delivered and who are ordinarily resident in the district, region, or other subdivision; and

    • (b) it has consulted on the proposal with the Medical Officer of Health for the district; and

    • (c) it has made publicly available in a balanced and timely manner—

      • (i) the views of the Medical Officer of Health; and

    • (d) the proposal is supported, in a binding referendum conducted under section 9 of the Local Electoral Act 2001 using the First Past the Post electoral system,—

      • (i) in the case of a proposal to close down a water service, by 75% or more of the votes cast in accordance with subsection (3); and

      • (ii) in the case of a proposal to transfer a water service, by more than 50% of the votes cast in accordance with section 132.

    (3) For the purpose of subsection (2)(a), a certificate signed by the chief executive of the local government organisation as to the number of persons to whom the water service is delivered in the district, region, or other subdivision at any date is conclusive evidence of that number.

132 Eligibility to vote in referendum
  • A person is eligible to vote in a referendum conducted under section 131(2)(d) if the person is qualified as either—

    • (a) a residential elector under section 23 of the Local Electoral Act 2001 and the address in respect of which the person is registered as a parliamentary elector is a property serviced by the water service that is the subject of the referendum; or

    • (b) a ratepayer elector under section 24 of the Local Electoral Act 2001 and the property, for the purposes of section 24(1)(a) or (b) of that Act, is a property serviced by the water service that is the subject of the referendum.

133 Responsibility for conduct of referendum
  • (1) The territorial authority that is responsible for conducting a referendum under section 131(2)(d) is the territorial authority in whose district the majority of persons eligible to vote in that referendum is on the roll of electors of that territorial authority.

    (2) The electoral officer of a territorial authority responsible for conducting a referendum under subsection (1) must prepare a special roll of the persons eligible to vote under section 132.

    (3) The provisions of the Local Electoral Act 2001 apply, with any necessary modifications, to the conduct of a referendum under section 131(2)(d).

134 Criteria for closure of water service
  • A local government organisation may only close down a water service under section 131(1)(a) if it has first—

    • (a) reviewed the likely effect of the closure on—

      • (i) the public health of the community that would be affected by the closure; and

      • (ii) the environment in the district of that community; and

    • (b) assessed, in relation to each property that receives the water service, the likely capital cost and annual operating costs of providing an appropriate alternative service if the water service is closed down; and

    • (c) compared the quality and adequacy of the existing water service with the likely quality and adequacy of the alternative service referred to in paragraph (b).

135 Criteria for transfer of water service
  • A local government organisation may only transfer a water service under section 131(1)(b) if it has first—

    • (a) developed a draft management plan under which the entity representative of the community would maintain and operate the water service; and

    • (b) assessed the likely future capital and operating costs of the entity representative of the community to maintain and operate the water service; and

    • (c) assessed the ability of the entity representative of the community to maintain and operate the water service satisfactorily.

Contracting out of water services

136 Contracts relating to provision of water services
  • (1) Despite section 130(2), a local government organisation may enter into contracts for any aspect of the operation of all or part of a water service for a term not longer than 35 years.

    (2) If a local government organisation enters into a contract under subsection (1), it must—

    • (a) continue to be legally responsible for providing the water services; and

    • (b) retain control over the following matters:

      • (i) the pricing of water services; and

      • (ii) the development of policy related to the delivery of water services.

    (3) This section does not limit contracts in relation to water services that are entered into solely between local government organisations.

    Section 136: substituted, on 27 November 2010, by section 32 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Joint local government arrangements and joint arrangements with other entities

  • Heading: substituted, on 7 July 2004, by section 13 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

137 Joint local government arrangements and joint arrangements with other entities
  • (1) In this section,—

    joint arrangement means an arrangement entered into by 1 or more local government organisations with 1 or more bodies that are not local government organisations for the purpose of providing water services or any aspect of a water service

    joint local government arrangement means an arrangement entered into by 2 or more local government organisations for the purpose of providing water services or any aspect of a water service.

    (2) Section 130(2) does not prevent a local government organisation from entering into, for the purpose of providing water services,—

    • (a) a joint arrangement for a term not longer than 35 years (except a concession or other franchise agreement relating to the provision of the water services or any aspect of the water services):

    • (b) a joint local government arrangement for any term.

    (3) However, before a local government organisation enters into a joint arrangement or joint local government arrangement, it must,—

    • (a) in the case of a local government organisation that is a local authority, have undertaken consultation in accordance with the procedures set out in Part 6; and

    • (b) in the case of a local government organisation that is not a local authority, have undertaken consultation in accordance with the procedures set out in Part 6 as if it were a local authority.

    • (c) [Repealed]

    (4) If a local government organisation enters into a joint arrangement under subsection (2)(a), it must—

    • (a) continue to be legally responsible for providing the water services; and

    • (b) retain control over the following matters:

      • (i) the pricing of water services; and

      • (ii) the development of policy related to water services; and

    • (c) after the end of the joint arrangement, retain ownership of all the infrastructure associated with the water service, whether or not the infrastructure was—

      • (i) provided by the local government organisation at the beginning of the joint arrangement; or

      • (ii) developed or purchased during the joint arrangement; and

    • (d) not sell or transfer ownership of any existing infrastructure associated with the water service, unless the local government organisation reasonably believes that the sale is—

      • (i) incidental to the joint arrangement; and

      • (ii) desirable for the success of the joint arrangement.

    (5) In this section, concession or other franchise agreement means an agreement under which a person other than the local government organisation is entitled to receive a payment from any person other than the local government organisation for the supply of the water service.

    Section 137 heading: substituted, on 7 July 2004, by section 14(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 137(1): substituted, on 7 July 2004, by section 14(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 137(2)(a): substituted, on 27 November 2010, by section 33(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 137(2)(b): amended, on 7 July 2004, by section 14(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 137(3): amended, on 7 July 2004, by section 14(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 137(3): amended, on 7 July 2004, by section 14(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 137(3)(b): amended, on 27 November 2010, by section 33(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 137(3)(c): repealed, on 27 November 2010, by section 33(3) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 137(4): substituted, on 27 November 2010, by section 33(4) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 137(5): added, on 27 November 2010, by section 33(4) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 3Restrictions on disposal of parks, reserves, and endowment properties

Parks and reserves

138 Restriction on disposal of parks (by sale or otherwise)
  • (1) A local authority proposing to sell or otherwise dispose of a park or part of a park must consult on the proposal before it sells or disposes of, or agrees to sell or dispose of, the park or part of the park.

    (2) In this section,—

    dispose of, in relation to a park, includes the granting of a lease for more than 6 months that has the effect of excluding or substantially interfering with the public's access to the park

    park

    • (a) means land acquired or used principally for community, recreational, environmental, cultural, or spiritual purposes; but

    • (b) does not include land that is held as a reserve, or part of a reserve, under the Reserves Act 1977.

    Section 138: substituted, on 28 June 2006, by section 13 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

139 Protection of regional parks
  • (1) In this section and section 139A, regional park

    • (a) means land—

      • (i) owned by a regional council; and

      • (ii) acquired or used principally for community, recreational, environmental, cultural, or spiritual purposes; and

    • (b) includes land within the meaning of paragraph (a) that is—

      • (i) reserve within the meaning of section 2(1) of the Reserves Act 1977; or

      • (ii) otherwise held or administered under the Reserves Act 1977 or any earlier corresponding enactment.

    (2) For the purpose of enabling a regional council to protect a regional park or part of a regional park in its region, the Governor-General may, by Order in Council made on the recommendation of the Minister, declare the park or the part of the park to be protected in perpetuity from disposition (by sale or otherwise).

    (3) The Minister must not make a recommendation unless the regional council has requested the Minister to do so.

    (4) An Order in Council does not prevent a regional council from disposing of part of the regional park to which the order applies—

    • (a) to make a minor boundary adjustment to it:

    • (b) for the more efficient administration of it.

    (5) However, subsection (4) applies only if—

    • (a) the retention of the land would not materially enhance the conservation or recreational value of the park; and

    • (b) the regional council has consulted in a manner that gives effect to the requirements of section 82 in determining whether to dispose of the land.

    (6) Any land within the meaning of subsection (1)(b) that is included in an Order in Council—

    • (b) remains subject to that Act; and

    • (c) if the land is to be sold or disposed of under subsection (4) of this section, must first be dealt with under sections 24 and 25 of that Act.

    (7) An Order in Council must specify the regional park or the part of the regional park to which the order applies—

    • (a) by name and legal description, if it is practicable to do so; or

    • (b) by name and a detailed description of the location of the land, in any other case.

    Section 139: substituted, on 28 June 2006, by section 14 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 139(5)(b): replaced, on 8 August 2014, by section 45 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

139A Further provision in relation to regional parks
  • (1) An Order in Council made under section 139 may be varied to include a reference to any land included in the regional park after the Order is made.

    (2) The provisions of section 139 apply, with all necessary modifications, to an Order in Council varied under subsection (1).

    Section 139A: inserted, on 28 June 2006, by section 14 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Endowment property

140 Restrictions on disposal of endowment property
  • (1) In this section and section 141, property

    • (a) means real property of every type; and

    • (b) includes every type of estate and interest in property.

    (2) This section and section 141 apply to property or part of a property vested in a local authority in trust or as an endowment.

    (3) The property must be retained by the local authority for the purpose for which the property was vested in the local authority.

    (4) However,—

    • (a) the Minister may approve in writing additional or different purposes—

      • (i) for which the property may be used; or

      • (ii) for which income derived from the property may be used; or

    • (b) unless expressly prohibited by the instrument that vested the property in the local authority, the local authority may sell or exchange the property and use the proceeds of the sale or exchange for a purpose identified by the local authority in accordance with section 141.

141 Conditions applying to sale or exchange of endowment property
  • (1) A local authority must not exercise the power in section 140(4)(b) unless—

    • (a) the proposed use of the proceeds of sale of the property, or of the property received in exchange, is consistent with the purpose of the endowment; and

    • (b) [Repealed]

    • (c) in a case where the Crown was the donor of the property, the local authority has notified the Minister for Land Information and the Minister in Charge of Treaty of Waitangi Negotiations of the local authority's proposal to sell or exchange the endowment land; and

    • (d) in other cases, the local authority has—

      • (i) made a reasonable attempt to notify the donor of the property, or his or her successor, as the case may be, that the local authority intends to sell or exchange the property; and

      • (ii) provided the donor with a reasonable opportunity to comment on the intended sale or exchange.

    (2) To avoid doubt, notification of a proposal to sell or exchange a property under subsection (1)(c) does not oblige a Minister to take any action in relation to the proposal to sell or exchange the property.

    (3) If the local authority is subject to reorganisation, the proceeds of a sale or exchange of property must be applied to the district or districts of the new local authority or authorities arising from the reorganisation of which the local authority formed part.

    Compare: 1974 No 66 s 230

    Section 141(1)(b): repealed, on 27 November 2010, by section 34 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Subpart 4Public libraries

142 Obligation to provide free membership of libraries
  • If a local authority or a council-controlled organisation provides a library for public use, the residents in the district or region are entitled to join the library free of charge.

    Compare: 1974 No 66 s 601(4)

Part 8
Regulatory, enforcement, and coercive powers of local authorities

Subpart 1Powers of local authorities to make bylaws

143 Outline of Part
  • This Part provides the powers necessary for local authorities—

    • (a) to make bylaws:

    • (b) in relation to enforcement,—

      • (i) to enforce all regulatory measures made under this Act, including bylaws and infringement offences; and

      • (ii) to undertake, or contract out the administration of, those enforcement powers:

    • (c) to undertake certain activities on, or in relation to, private land, including powers in relation to owners and occupiers, and powers to recover for damage to certain local authority property caused wilfully or negligently:

    • (d) to undertake activities in relation to water services, including discharge of sewage and trade wastes:

    • (e) to require development contributions:

    • (f) to apply for and enforce removal orders.

144 Bylaws Act 1910

Powers of territorial authorities to make bylaws

145 General bylaw-making power for territorial authorities
  • A territorial authority may make bylaws for its district for 1 or more of the following purposes:

    • (a) protecting the public from nuisance:

    • (b) protecting, promoting, and maintaining public health and safety:

    • (c) minimising the potential for offensive behaviour in public places.

146 Specific bylaw-making powers of territorial authorities
  • Without limiting section 145, a territorial authority may make bylaws for its district for the purposes—

    • (a) of regulating 1 or more of the following:

      • (i) on-site wastewater disposal systems:

      • (ii) waste management:

      • (iii) trade wastes:

      • (iv) solid wastes:

      • (v) keeping of animals, bees, and poultry:

      • (vi) trading in public places:

    • (b) of managing, regulating against, or protecting from, damage, misuse, or loss, or for preventing the use of, the land, structures, or infrastructure associated with 1 or more of the following:

      • (i) water races:

      • (ii) water supply:

      • (iii) wastewater, drainage, and sanitation:

      • (iv) land drainage:

      • (v) cemeteries:

      • (vi) reserves, recreation grounds, or other land under the control of the territorial authority:

    • (c) subject to sections 20 to 22 of the Forest and Rural Fires Act 1977, of preventing the spread of fires involving vegetation.

147 Power to make bylaws for alcohol control purposes
  • (1) In this section,—

    alcohol has the meaning given by section 5(1) of the Sale and Supply of Alcohol Act 2012

    licensed premises has the meaning given by section 5(1) of the Sale and Supply of Alcohol Act 2012

    public place

    • (a) means a place that is open to or is being used by the public, whether free or on payment of a charge, and whether any owner or occupier of the place is lawfully entitled to exclude or eject any person from it; but

    • (b) does not include licensed premises.

    (2) A territorial authority may make bylaws for its district for the purpose of prohibiting or otherwise regulating or controlling, either generally or for one or more specified periods, any or all of the following:

    • (a) the consumption of alcohol in public places:

    • (b) the bringing of alcohol into public places:

    • (c) the possession of alcohol in public places.

    (3) In conjunction with a bylaw under subsection (2), a territorial authority may make bylaws for its district for the purpose of prohibiting or otherwise regulating or controlling, either generally or for one or more specified periods, the presence or consumption of alcohol in vehicles, or vehicles of stated kinds or descriptions, in public places.

    (4) A bylaw under this section does not prohibit, regulate, or control, in the case of alcohol in an unopened container,—

    • (a) the transport of the alcohol from licensed premises next to a public place, if—

      • (i) it was lawfully bought on those premises for consumption off those premises; and

      • (ii) it is promptly removed from the public place; or

    • (b) the transport of the alcohol from outside a public place for delivery to licensed premises next to the public place; or

    • (c) the transport of the alcohol from outside a public place to premises next to a public place by, or for delivery to, a resident of the premises or his or her bona fide visitors; or

    • (d) the transport of the alcohol from premises next to a public place to a place outside the public place if—

      • (i) the transport is undertaken by a resident of those premises; and

      • (ii) the alcohol is promptly removed from the public place.

    (5) Subsections (2) and (3) do not limit section 145.

    Section 147: replaced, on 18 December 2013, by section 4 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

147A Criteria for making or continuing bylaws
  • (1) Before making a bylaw under section 147, a territorial authority—

    • (a) must be satisfied that it can be justified as a reasonable limitation on people's rights and freedoms; and

    • (b) except in the case of a bylaw that will apply temporarily for a large scale event, must also be satisfied that—

      • (i) there is evidence that the area to which the bylaw is intended to apply has experienced a high level of crime or disorder that can be shown to have been caused or made worse by alcohol consumption in the area; and

      • (ii) the bylaw is appropriate and proportionate in the light of that crime or disorder.

    (2) Before deciding that a bylaw under section 147 should continue without amendment, a territorial authority must be satisfied that the level of crime or disorder experienced before the bylaw was made (being crime or disorder that can be shown to have been caused or made worse by alcohol consumption in the area concerned) is likely to return to the area to which the bylaw is intended to apply if the bylaw does not continue.

    (3) Before making under section 147 a bylaw that is intended to replace an expiring bylaw and is to the same effect (or to substantially the same effect) as the expiring bylaw, a territorial authority must be satisfied that—

    • (a) the bylaw can be justified as a reasonable limitation on people's rights and freedoms; and

    • (b) a high level of crime or disorder (being crime or disorder caused or made worse by alcohol consumption in the area concerned) is likely to arise in the area to which the bylaw is intended to apply if the bylaw is not made; and

    • (c) the bylaw is appropriate and proportionate in the light of that likely crime or disorder.

    (4) Subsection (1) does not apply to a bylaw of a kind described in subsection (3).

    Section 147A: inserted, on 18 December 2013, by section 4 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

147B Criteria for making resolutions relating to bylaws
  • Before making under section 151 a resolution relating to a bylaw under section 147, a territorial authority must be satisfied that—

    • (a) there is evidence that the area to which the bylaw applies (or will apply by virtue of the resolution) has experienced a high level of crime or disorder that can be shown to have been caused or made worse by alcohol consumption in the area; and

    • (b) the bylaw, as applied by the resolution,—

      • (i) is appropriate and proportionate in the light of the evidence; and

      • (ii) can be justified as a reasonable limitation on people's rights and freedoms.

    Section 147B: inserted, on 18 December 2013, by section 4 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

147C Signage for areas in which bylaws for alcohol control purposes apply
  • Regulations under section 259 may do any or all of the following:

    • (a) require territorial authorities to erect and maintain signs indicating the existence or boundaries of areas in their districts in which a bylaw under section 147 applies:

    • (b) describe the required placement of the signs required to be erected and maintained:

    • (c) prescribe particular forms for particular kinds of sign required to be erected and maintained (including, without limitation, content, size, lettering, symbols, and colouring).

    Section 147C: inserted, on 18 December 2013, by section 4 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

148 Special requirements for bylaws relating to trade wastes
  • (1) Before making bylaws under section 146(a)(iii), a territorial authority must send a copy of the proposed bylaws to the Minister of Health for his or her comments.

    (2) Before sending proposed bylaws to the Minister of Health under subsection (1), the territorial authority must, at least 2 months before the making of the bylaws, give public notice of its intention to make the bylaws, stating—

    • (a) the trade wastes to which the bylaws will relate; and

    • (b) that copies of the draft bylaws may be inspected free of charge at the place specified in the notice and may be obtained on payment of the charge specified in the notice; and

    • (c) that the territorial authority is prepared to receive and consider any representation about the bylaws made to it in writing by, or on behalf of, owners or occupiers of trade premises within its district at the time specified in the notice, being not less than 2 months after publication of the notice.

    (3) Before making the bylaws, the territorial authority must consider any representation received in accordance with the notice given under subsection (2).

    (4) The territorial authority must, before making the bylaws, consult any body of persons the Minister of Health specifies to the territorial authority as being representative of—

    • (a) the interests of the owners or occupiers of trade premises in the district of the territorial authority; or

    • (b) any class of those owners or occupiers.

    (5) A territorial authority—

    • (a) must enter on a register the name and postal address of an owner or occupier of trade premises who serves on the territorial authority a written request for registration; and

    • (b) must ensure that a copy of a notice required under subsection (2) is sent to the persons registered under paragraph (a); and

    • (c) may remove from the register the name of a person who has ceased to be the owner or occupier of trade premises within its district, or who has requested the local authority in writing to remove his or her name from the register.

    (6) Nothing in this section limits the provisions of the Health Act 1956 or the Resource Management Act 1991.

    (7) The requirements in this section are in addition to the requirements in section 156, but a territorial authority may comply with both sections by using a single process.

    Compare: 1974 No 66 s 492

    Section 148(7): substituted, on 20 September 2007, by section 5 of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).

Power of regional councils to make bylaws

149 Power of regional councils to make bylaws
  • (1) A regional council may make bylaws in relation to the following matters:

    • (a) forests that the regional council owns or controls, whether or not the forest is within the region of the regional council:

    • (b) parks, reserves, recreation grounds, or other land that the regional council owns or controls:

    • (c) flood protection and flood control works undertaken by, or on behalf of, the regional council:

    • (d) water supply works undertaken by, or on behalf of, the regional council.

    (2) Without limiting the generality of subsection (1), bylaws may be made in relation to the matters listed in subsection (1) for the purpose of managing, regulating against, or protecting from, damage, misuse, or loss, or for preventing the use of,—

    • (a) the real and personal property owned or controlled by the regional council; and

    • (b) sites or places on land of the regional council that have cultural, historical, recreational, scientific, or other community or amenity values.

    Compare: 1974 No 66 s 586

Power of local authorities to prescribe fees

150 Fees may be prescribed by bylaw
  • (1) A local authority may prescribe fees or charges payable for a certificate, authority, approval, permit, or consent from, or inspection by, the local authority in respect of a matter provided for—

    • (a) in a bylaw made under this Act; or

    • (b) under any other enactment, if the relevant provision does not—

      • (i) authorise the local authority to charge a fee; or

      • (ii) provide that the certificate, authority, approval, permit, consent, or inspection is to be given or made free of charge.

    (2) A bylaw may provide for the refund, remission, or waiver of a fee in specified situations or in situations determined by the local authority.

    (3) Fees provided for in subsection (1) must be prescribed either—

    • (a) in bylaws; or

    • (b) following consultation in a manner that gives effect to the requirements of section 82.

    (4) The fees prescribed under subsection (1) must not provide for the local authority to recover more than the reasonable costs incurred by the local authority for the matter for which the fee is charged.

    (5) The local authority must ensure that copies of all bylaws made under subsection (1) or subsection (3) are available for public inspection free of charge at the public office of the local authority during ordinary office hours.

    (6) This section does not apply to charges for goods, services, or amenities provided by the local authority in reliance on the general power under section 12.

    Compare: 1974 No 66 s 690A

    Section 150(3)(b): replaced, on 8 August 2014, by section 46 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150A Costs of development contribution objections
  • (1) If a person objects to a territorial authority's requirement that a development contribution be made, the territorial authority may recover from the person its actual and reasonable costs in respect of the objection.

    (2) The costs that the territorial authority may recover under this section are the costs incurred by it in respect of—

    • (a) the selection, engagement, and employment of the development contributions commissioners; and

    • (b) the secretarial and administrative support of the objection process; and

    • (c) preparing for, organising, and holding the hearing.

    (3) A territorial authority may, in any particular case and in its absolute discretion, waive or remit the whole or any part of any costs that would otherwise be payable under this section.

    (4) A territorial authority's actual and reasonable costs in respect of objections are recoverable under section 252.

    Section 150A: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Bylaws proposed by local boards

  • Heading: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150B Local boards may propose bylaw
  • (1) A local board may propose to the governing body, in writing, the making of a bylaw to apply only in, or only in any part of, its local board area.

    (2) As soon as is practicable after receiving a proposal under subsection (1), the governing body must decide whether the proposed bylaw meets the following requirements:

    • (a) the enactment under which the proposed bylaw is to be made authorises the making of the bylaw; and

    • (b) the proposed bylaw complies with the applicable statutory requirements of that enactment and any other relevant enactment; and

    • (c) the proposed bylaw is not inconsistent with any strategy, policy, plan, or bylaw of the unitary authority; and

    • (d) the proposed bylaw can be implemented and enforced within the local board's budget; and

    • (e) the proposed bylaw will not have any significant effect outside the local board's area.

    (3) If the governing body decides that a proposed bylaw—

    • (a) meets the requirements of subsection (2), it must give written notice of its decision to the local board:

    • (b) does not meet the requirements of subsection (2), it must give written notice of its decision (with reasons) to the local board.

    (4) In this section and sections 150C to 150F,—

    • (a) a reference to the governing body in relation to a local board means the governing body of the unitary authority for the district that includes the local board area of that local board; and

    • (b) a reference to the unitary authority in relation to a local board means the unitary authority for the district that includes the local board area of that local board.

    Section 150B: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150C Local board must consult on proposed bylaw
  • (1) This section applies if a local board has received notice under section 150B(3)(a) from a governing body in respect of a bylaw that the local board has proposed.

    (2) The local board must consult the public within the local board area on the proposed bylaw and, for that purpose, section 156(1) applies, with any necessary modifications, as if the local board were a local authority.

    (3) If, after acting under subsection (2), the local board confirms the proposed bylaw, it must give written notice of its decision to the governing body, and the governing body must adopt the bylaw by resolution.

    (4) If, after acting under subsection (2), the local board modifies the proposed bylaw, it must given written notice of its decision to the governing body, and the governing body must,—

    • (a) if satisfied that the proposed bylaw meets the requirements of section 150B(2), adopt the bylaw by resolution; or

    • (b) if not satisfied that the proposed bylaw meets the requirements of section 150B(2), give notice to the local board under section 150B(3)(b).

    (5) Where the unitary authority adopts under subsection (3) or (4)(a) a bylaw that is made under this Act, the requirements of sections 86, 155, and 156 are deemed to be satisfied in respect of that bylaw.

    Section 150C: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150D Local board may propose amendment to bylaw
  • (1) A local board may propose to the governing body, in writing, that a bylaw that applies only in, or only in any part of, its local board area be amended.

    (2) For the purposes of subsection (1), sections 150B and 150C apply with any necessary modifications.

    Section 150D: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150E Local board may propose revocation of bylaw
  • (1) A local board may propose to the governing body, in writing, that a bylaw that applies only in, or only in any part of, its local board area be revoked.

    (2) As soon as practicable after receiving a proposal under subsection (1), the governing body must decide whether the proposed revocation—

    • (a) complies with the applicable statutory requirements; and

    • (b) is not inconsistent with any strategy, policy, or plan of the unitary authority; and

    • (c) will not have any significant effect outside the local board's area.

    (3) If the governing body decides that a proposed revocation—

    • (a) meets the requirements of subsection (2), it must give written notice of its decision to the local board:

    • (b) does not meet the requirements of subsection (2), it must give written notice of its decision (with reasons) to the local board.

    (4) If the local board receives notice under subsection (3)(a), section 150C(2), (3), and (5) applies, with any necessary modifications, as if the proposed revocation were a proposed bylaw.

    Section 150E: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

150F Joint bylaw proposals
  • (1) Two or more local boards may propose to the governing body, in writing, the making of a bylaw to apply only in, or only in any part of, the local boards' areas.

    (2) For the purposes of subsection (1), sections 150B to 150D apply with any necessary modifications.

    Section 150F: inserted, on 8 August 2014, by section 47 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

General provisions applying to bylaws made by a local authority

151 General provisions applying to bylaws made under this Act
  • (1AA) This section applies to a bylaw only if it is made under this Act or the Maritime Transport Act 1994.

    (1) A bylaw may require anything to be done in any manner, or within any time, that is required by the local authority or by a person referred to in the bylaw.

    (2) A bylaw may leave any matter or thing to be regulated, controlled, or prohibited by the local authority by resolution either generally, for any specified classes of case, or in a particular case.

    (3) A bylaw may provide for the following:

    • (a) the licensing of persons or property:

    • (b) the payment of reasonable licence fees:

    • (c) recovery of costs incurred by the local authority in relation to an activity licensed under a bylaw.

    Compare: 1974 No 66 s 682(a)–(c)

    Section 151 heading: amended, on 28 June 2006, by section 15(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 151(1AA): inserted, on 28 June 2006, by section 15(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 151(1AA): amended, on 23 October 2013, by section 90 of the Maritime Transport Amendment Act 2013 (2013 No 84).

152 Effect of Building Act 2004 on bylaws
  • (1) A council may not make a bylaw under this Act that purports to have the effect of requiring a building to achieve performance criteria additional to, or more restrictive than, those specified in the Building Act 2004 or the building code.

    (2) For the purposes of this section, building, building code, and performance criteria have the meanings given to them by the Building Act 2004.

    Compare: 1974 No 66 s 684A

    Section 152 heading: amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 152(1): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 152(2): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

The Crown bound by certain bylaws

153 The Crown bound by certain bylaws
  • (1) The Crown is bound by bylaws made by a local authority under any of the following provisions:

    • (d) section 146(b)(iii), in relation to stormwater from any building and drainage from any infrastructure:

    (2) The Crown is not bound by bylaws made by a local authority under any other provision of this Part.

    (3) However, the Crown is bound by any bylaw if non-compliance with that bylaw by the Crown would be likely to have an adverse effect on public health or safety.

154 Power of exemption
  • (1) The Minister of Local Government may, by written notice to the relevant local authority, exempt the Crown from any bylaw by which it is bound under section 153 if the Minister is satisfied, in his or her discretion, that the exemption is in the national interest.

    (2) If a notice is given under subsection (1), the Minister must, as soon as practicable after giving the notice, publish in the Gazette and present to the House of Representatives a copy of the notice.

Procedure for making bylaws

155 Determination whether bylaw made under this Act is appropriate
  • (1AA) This section applies to a bylaw only if it is made under this Act or the Maritime Transport Act 1994.

    (1) A local authority must, before commencing the process for making a bylaw, determine whether a bylaw is the most appropriate way of addressing the perceived problem.

    (2) If a local authority has determined that a bylaw is the most appropriate way of addressing the perceived problem, it must, before making the bylaw, determine whether the proposed bylaw—

    • (a) is the most appropriate form of bylaw; and

    (3) No bylaw may be made which is inconsistent with the New Zealand Bill of Rights Act 1990, notwithstanding section 4 of that Act.

    Section 155 heading: amended, on 28 June 2006, by section 16(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 155(1AA): inserted, on 28 June 2006, by section 16(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 155(1AA): amended, on 23 October 2013, by section 90 of the Maritime Transport Amendment Act 2013 (2013 No 84).

156 Consultation requirements when making, amending, or revoking bylaws made under this Act
  • (1) When making a bylaw under this Act or amending or revoking a bylaw made under this Act, a local authority must—

    • (a) use the special consultative procedure (as modified by section 86) if—

      • (i) the bylaw concerns a matter identified in the local authority's policy under section 76AA as being of significant interest to the public; or

      • (ii) the local authority considers that there is, or is likely to be, a significant impact on the public due to the proposed bylaw or changes to, or revocation of, the bylaw; and

    • (b) in any case in which paragraph (a) does not apply, consult in a manner that gives effect to the requirements of section 82.

    (2) Despite subsection (1), a local authority may, by resolution publicly notified,—

    • (a) make minor changes to, or correct errors in, a bylaw, but only if the changes or corrections do not affect—

      • (i) an existing right, interest, title, immunity, or duty of any person to whom the bylaw applies; or

      • (ii) an existing status or capacity of any person to whom the bylaw applies:

    • (b) convert an imperial weight or measure specified in a bylaw into its metric equivalent or near metric equivalent.

    Section 156: substituted, on 28 June 2006, by section 17 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 156 heading: replaced, on 8 August 2014, by section 48(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 156(1): replaced, on 8 August 2014, by section 48(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 156(2): amended, on 8 August 2014, by section 48(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

157 Public notice of bylaws and availability of copies
  • (1) As soon as practicable after a bylaw is made, the local authority must give public notice of the making of the bylaw, stating—

    • (a) the date on which the bylaw will come into operation; and

    • (b) that copies of the bylaw may be inspected and obtained at the office of the local authority on payment of a specified amount.

    (2) A local authority must—

    • (a) keep copies of all its bylaws at the office of the local authority; and

    • (b) make its bylaws available for public inspection, without fee, at reasonable hours at the office of the authority; and

    • (c) supply to any person, on request and on payment of a reasonable charge, a copy of any of its bylaws.

    Compare: 1974 No 66 s 689

Review of bylaws made under this Act or the Local Government Act 1974

  • Heading: amended, on 28 June 2006, by section 18 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

158 Review of bylaws made under this Act or the Local Government Act 1974
  • (1) A local authority must review a bylaw made by it under this Act or the Maritime Transport Act 1994 (other than a bylaw deemed to be made under this Act by section 293) no later than 5 years after the date on which the bylaw was made.

    (2) A local authority must review a bylaw made by it under the Local Government Act 1974 (other than a bylaw deemed to be made under this Act by section 293)—

    • (a) no later than 1 July 2008, if the bylaw was made before 1 July 2003; and

    • (b) no later than 5 years after the bylaw was made, if the bylaw was made after 1 July 2003.

    Section 158: substituted, on 28 June 2006, by section 19 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 158(1): amended, on 23 October 2013, by section 90 of the Maritime Transport Amendment Act 2013 (2013 No 84).

159 Further reviews of bylaws every 10 years
  • A local authority must review a bylaw made by it under this Act, the Maritime Transport Act 1994, or the Local Government Act 1974 no later than 10 years after it was last reviewed as required by section 158 or this section.

    Section 159: substituted, on 28 June 2006, by section 19 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 159: amended, on 23 October 2013, by section 90 of the Maritime Transport Amendment Act 2013 (2013 No 84).

160 Procedure for and nature of review
  • (1) A local authority must review a bylaw to which section 158 or 159 applies by making the determinations required by section 155.

    (2) For the purposes of subsection (1), section 155 applies with all necessary modifications.

    (3) If, after the review, the local authority considers that the bylaw—

    • (a) should be amended, revoked, or revoked and replaced, it must act under section 156:

    • (b) should continue without amendment, it must—

      • (i) consult on the proposal using the special consultative procedure if—

        • (A) the bylaw concerns a matter identified in the local authority’s policy under section 76AA as being of significant interest to the public; or

        • (B) the local authority considers that there is, or is likely to be, a significant impact on the public due to the proposed continuation of the bylaw; and

      • (ii) in any other case, consult on the proposed continuation of the bylaw in a manner that gives effect to the requirements of section 82.

    (4) For the purpose of the consultation required under subsection (3)(b), the local authority must make available—

    • (a) a copy of the bylaw to be continued; and

    • (b) the reasons for the proposal; and

    • (c) a report of any relevant determinations by the local authority under section 155.

    (5) This section does not apply to any bylaw to which section 10AA of the Dog Control Act 1996 applies.

    Section 160: substituted, on 28 June 2006, by section 19 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 160(3)(b): replaced, on 8 August 2014, by section 49(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 160(4): amended, on 8 August 2014, by section 49(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

160A Bylaw not reviewed within specified time frame revoked
  • A bylaw that is not reviewed as required under section 158 or 159, if not earlier revoked by the local authority concerned, is revoked on the date that is 2 years after the last date on which the bylaw should have been reviewed under that section.

    Section 160A: inserted, on 28 June 2006, by section 19 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Transfer of bylaw-making power

161 Transfer of bylaw-making power
  • (1) A territorial authority may transfer all or any of its powers to make bylaws—

    • (a) to a regional council if any part of the district of the territorial authority is within the region of that regional council; or

    • (b) to another territorial authority.

    (2) A regional council may transfer all or any of its powers to make bylaws to a territorial authority within its region or to another regional council.

    (3) The provisions of section 17 apply in relation to a transfer under this section.

    (4) A local authority must not transfer or delegate the power to make bylaws, except as provided for in this section.

Subpart 2Enforcement powers

Injunctions

162 Injunctions restraining commission of offences and breaches of bylaws
  • (1) A District Court may, on the application of a local authority, grant an injunction restraining a person from committing a breach of a bylaw or an offence against this Act.

    (2) An injunction may be granted under subsection (1)—

    • (a) despite anything in any other enactment:

    • (b) whether or not proceedings in relation to the breach or offence have been commenced:

    • (c) if a person is convicted of the breach or offence,—

      • (i) in substitution for, or in addition to, any other penalty; or

      • (ii) in subsequent proceedings.

    Compare: 1974 No 66 ss 683, 698

Removal of works

163 Removal of works in breach of bylaws
  • (1) If authorised by a bylaw to do so, a local authority may—

    • (a) remove or alter a work or thing that is, or has been, constructed in breach of a bylaw; and

    • (b) recover the costs of removal or alteration from the person who committed the breach.

    (2) Nothing done under subsection (1) or in a bylaw referred to in that subsection relieves the person who committed the breach from any other liability for the breach of the bylaw.

    Compare: 1974 No 66 s 692

Seizure of property

164 Seizure of property not on private land
  • (1) An enforcement officer may seize and impound property that is not on private land if—

    • (a) the property is materially involved in the commission of an offence; and

    • (b) it is reasonable in the circumstances to seize and impound the property; and

    • (c) before seizing and impounding the property, the enforcement officer—

      • (i) directed (orally or in writing) the person committing the offence to stop committing the offence; and

      • (ii) has advised (orally or in writing) the person committing the offence that, if he or she does not stop committing the offence, the enforcement officer has power to seize and impound the property; and

      • (iii) provided the person with a reasonable opportunity to stop committing the offence.

    (2) However, if the property is not in the possession of a person at the time the enforcement officer proposes to seize and impound the property, the enforcement officer does not have to comply with subsection (1)(c).

    (3) As soon as practicable after seizing and impounding property, an enforcement officer must give a notice in the prescribed form—

    • (a) to the person in possession of the property at the time it was seized and impounded; or

    • (b) if paragraph (a) does not apply, to any person who the enforcement officer can ascertain is the owner of, or has an interest in, the property.

    (4) In this section and section 165, offence

    • (a) means an offence against this Act; and

    • (b) includes a breach of a bylaw.

165 Seizure of property from private land
  • (1) An issuing officer (within the meaning of section 3 of the Search and Surveillance Act 2012) may issue a warrant authorising an enforcement officer to enter private property involved in the commission of an offence, and seize and impound property.

    (2) A warrant may be issued only if—

    • (a) the application for it is made in the manner provided for an application for a search warrant in subpart 3 of Part 4 of the Search and Surveillance Act 2012; and

    • (b) the issuing officer is satisfied that—

      • (i) the property is materially involved in the commission of an offence; and

      • (ii) it is reasonable in the circumstances for the property to be seized; and

      • (iii) the enforcement officer has directed the person committing the offence to stop committing the offence and has advised the person that, if he or she fails to do so, the enforcement officer intends to apply for a warrant; and

      • (iv) the enforcement officer has given the person committing the offence a reasonable opportunity to stop committing the offence.

    (3) None of the following persons may act as an issuing officer under this section:

    • (a) the mayor or any elected member of the local authority:

    • (b) any employee of the local authority.

    (4) The provisions of Part 4 of the Search and Surveillance Act 2012 (except sections 118 and 119) apply as if a warrant issued under subsection (1) were a search warrant.

    Section 165(1): amended, on 1 October 2012, by section 270(1) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 165(2)(a): amended, on 1 October 2012, by section 270(2) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 165(2)(b): amended, on 1 October 2012, by section 270(3) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 165(3): replaced, on 1 October 2012, by section 270(4) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 165(4): replaced, on 1 October 2012, by section 270(4) of the Search and Surveillance Act 2012 (2012 No 24).

166 Conditions for exercise of warrant to seize property on private land
  • (1) An enforcement officer executing a warrant issued under section 165(1) must be accompanied by a constable.

    (2) Subsection (1) overrides section 165(4).

    Section 166(1): replaced, on 1 October 2012, by section 271(1) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 166(2): replaced, on 1 October 2012, by section 271(1) of the Search and Surveillance Act 2012 (2012 No 24).

167 Return of property seized and impounded
  • (1) The owner of property that has been seized and impounded under section 164, or the person from whom the property was seized, may request the local authority concerned to return the property.

    (2) The local authority must return the property if—

    • (a) the property is not likely to be involved in an offence for which it was seized; and

    • (b) the owner or person has paid, or tenders with the request payment of, the costs of the local authority in seizing, impounding, transporting, and storing the property.

    (3) If the local authority refuses to return the property, the owner or person from whom it was seized may apply to a District Court to review the local authority's decision.

    (4) The District Court may—

    • (a) confirm the local authority's decision; or

    • (b) order that the property be returned.

    Section 167(1): amended, on 1 October 2012, by section 271(2) of the Search and Surveillance Act 2012 (2012 No 24).

168 Power to dispose of property seized and impounded
  • (1) A local authority may dispose of property seized and impounded under section 164 that has not been returned within 6 months after it was seized and impounded.

    (2) A local authority must not dispose of property before giving the owner of the property and the person it was seized from not less than 14 working days' notice of the authority's intention to do so.

    (3) A local authority may dispose of the property by way of sale or otherwise as it thinks fit.

    (4) Any proceeds from the disposal of the property must be applied to pay,—

    • (a) first, the costs incurred in seizing, impounding, transporting, and storing the property:

    • (b) second, the costs of disposing of the property:

    • (c) third, any surplus to the owner of the property or the person from whom it was seized.

    Section 168(1): amended, on 1 October 2012, by section 271(3) of the Search and Surveillance Act 2012 (2012 No 24).

Powers of arrest, search, and seizure in relation to liquor

169 Powers of arrest, search, and seizure in relation to alcohol bans
  • (1) In this section and in sections 169A and 170,—

    alcohol has the meaning given by section 5(1) of the Sale and Supply of Alcohol Act 2012

    alcohol ban means a bylaw made under section 147

    offence means a breach of an alcohol ban

    restricted place means a public place (within the meaning of section 147(1)) in respect of which an alcohol ban is in force.

    (2) A constable may, without warrant,—

    • (a) for the purpose of ascertaining whether alcohol is present, search—

      • (i) a container (for example, a bag, case, package, or parcel) in the possession of a person who is in, or entering, a restricted place; or

      • (ii) a vehicle that is in, or is entering, a restricted place:

    • (b) seize and remove any alcohol (and its container) that is in a restricted place in breach of an alcohol ban:

    • (c) arrest any person whom the constable finds committing an offence:

    • (d) arrest any person who has refused to comply with a request by a constable—

      • (i) to leave a restricted place; or

      • (ii) to surrender to a constable any alcohol that, in breach of an alcohol ban is in the person's possession.

    (3) Alcohol or a container seized under subsection (2)(b) is forfeited to the Crown if the person from whom the alcohol or container is seized pays the infringement fee.

    Section 169: replaced, on 18 December 2013, by section 5 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

Matters of proof in relation to bylaws prohibiting alcohol in public place

  • Heading: inserted, on 18 December 2013, by section 5 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

169A Proving substance is alcohol in relation to alleged breach of alcohol ban
  • (1) In this section, labelled trade container means a container that is of a type sold in the ordinary course of trade, and is labelled to the effect that it contains 1.15% or more ethanol.

    (2) This subsection applies to a substance in respect of which a breach of alcohol ban is alleged to have been committed if the substance was in a container at the time the offence is alleged to have been committed, and—

    • (a) the container was a labelled trade container; or

    • (b) the container was not a labelled trade container but appeared to contain alcohol, and when it was opened the substance smelled like alcohol; or

    • (c) the defendant has at any time made to a constable an admission to the effect that the substance was alcohol.

    (3) If, in any proceedings for a breach of alcohol ban, it is proved that subsection (2) applies to the substance in respect of which the breach is alleged to have been committed, the substance must be presumed to be alcohol unless the defendant—

    • (a) proves that it was not; or

    • (b) has given notice in writing at least 20 working days before the hearing that he or she disputes that the substance was alcohol.

    Section 169A: inserted, on 18 December 2013, by section 5 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

170 Conditions relating to power of search
  • (1) Before exercising the power of search under section 169(2)(a) in relation to a container or a vehicle, a constable must—

    • (a) inform the person in possession of the container or the vehicle, as the case may be, that he or she has the opportunity of removing the container or the vehicle from the public place; and

    • (b) provide the person with a reasonable opportunity to remove the container or the vehicle, as the case may be, from the public place.

    (2) However, on specified dates or in relation to specified events, notified in accordance with subsection (3), a constable may, immediately and without further notice, exercise the power under section 169(2)(a) to search a container or a vehicle.

    (3) Before a constable may exercise the power of search under subsection (2), the territorial authority must—

    • (a) specify the public place (within the meaning of section 169(1)) where, and the period when, this power may be exercised by the Police by public notice given 14 days in advance in accordance with this Act; and

    • (b) indicate the location of the public place by 1 or more clearly legible notices affixed in 1 or more conspicuous places on, or adjacent to, the place to which the notice relates, unless it is impracticable or unreasonable to do so.

    (4) Subsection (2) only applies if the constable is authorised to exercise that power by a bylaw made under section 147.

    Compare: 1974 No 66 s 709H

    Section 170(1): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 170(1)(b): amended, on 7 July 2004, by section 17 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 170(2): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 170(3): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 170(4): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

Powers of entry

171 General power of entry
  • (1) For the purpose of doing anything that the local authority is empowered to do under this Act or any other Act, a local authority may enter any land or building other than a dwellinghouse.

    (2) [Repealed]

    (3) [Repealed]

    (4) If a local authority exercises the power under subsection (1) to enter unoccupied land or unoccupied buildings, the local authority must notify the owner—

    • (a) not less than 24 hours in advance of the intended entry if it is reasonably practicable to do so; or

    • (b) as early as reasonably practicable, whether before or after entry has been made.

    (5) This section does not limit section 172 or section 173.

    Section 171(2): repealed, on 1 October 2012, by section 271(4) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 171(3): repealed, on 1 October 2012, by section 271(4) of the Search and Surveillance Act 2012 (2012 No 24).

172 Power of entry for enforcement purposes
  • (1) A warranted enforcement officer may enter land for the purpose of detecting a breach of a bylaw or the commission of an offence against this Act if the officer has reasonable grounds for suspecting that a breach of the bylaw or the commission of the offence has occurred or is occurring on the land.

    (2) Before exercising the power in subsection (1), the officer must, if practicable, give reasonable notice to the occupier of the land of the intention to exercise the power, unless the giving of notice would defeat the purpose of entry.

    (3) The power in subsection (1) to enter a dwellinghouse must not be exercised unless—

    • (a) the entry is authorised by a warrant given by an issuing officer (within the meaning of section 3 of the Search and Surveillance Act 2012) on application made in the manner provided for an application for a search warrant in subpart 3 of Part 4 of that Act; and

    • (b) when exercising the power, the enforcement officer is accompanied by a constable.

    (4) Subject to subsections (3)(b) and (5), the provisions of Part 4 of the Search and Surveillance Act 2012 apply.

    (5) Despite subsection (4), sections 118 and 119 of the Search and Surveillance Act 2012 apply only in respect of a constable.

    Section 172(3)(a): amended, on 1 October 2012, by section 271(5) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 172(3)(b): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 172(4): replaced, on 1 October 2012, by section 271(6) of the Search and Surveillance Act 2012 (2012 No 24).

    Section 172(5): inserted, on 1 October 2012, by section 271(6) of the Search and Surveillance Act 2012 (2012 No 24).

173 Power of entry in cases of emergency
  • (1) A local authority may, for the purpose of doing anything that it is authorised to do under this Act or any other enactment, enter occupied land or buildings without giving prior notice, if—

    • (a) there is a sudden emergency causing or likely to cause—

      • (i) loss of life or injury to a person; or

      • (ii) damage to property; or

      • (iii) damage to the environment; or

    • (b) there is danger to any works or adjoining property.

    (2) The provisions of Part 4 of the Search and Surveillance Act 2012 (except subparts 2 and 3, and sections 118 and 119) apply.

    Compare: 1974 No 66 s 708A(3)

    Section 173(2): replaced, on 1 October 2012, by section 271(7) of the Search and Surveillance Act 2012 (2012 No 24).

174 Authority to act
  • (1) If an officer of a local authority or other person is authorised by this Act or another enactment to enter private land on behalf of the local authority, the local authority must provide a written warrant under the seal of the local authority as evidence that the person is so authorised.

    (2) The production of a warrant issued under subsection (1) is sufficient proof of a person's authorisation.

    (3) An authorised person must, if requested, produce the warrant provided under subsection (1) before entering private land under the authority.

    (4) An officer or other person must surrender to the local authority the warrant provided under subsection (1) if—

    • (a) the officer's appointment is terminated; or

    • (b) the authorisation referred to in subsection (1) is terminated.

    (5) This section does not apply to—

    • (a) a dog control officer or dog ranger acting under a power of entry conferred by the Dog Control Act 1996; or

    Compare: 1974 No 66 s 710

Recovery for damage

175 Power to recover for damage by wilful or negligent behaviour
  • A person who wilfully or negligently destroys, damages, stops, obstructs, or otherwise interferes with any works or property owned, constructed, acquired, or used by a local authority is liable for, as the case may be,—

    • (a) the amount of the destruction or damage; or

    • (b) the cost incurred by the local authority in removing the stoppage or obstruction; or

    • (c) any loss or expenses incurred by the local authority by the stoppage or obstruction or interference.

    Compare: 1974 No 66 s 695

176 Costs of remedying damage arising from breach of bylaw
  • (1) A person who has been convicted of an offence against a bylaw is liable to pay to the local authority concerned the costs of remedying any damage caused in the course of committing the offence.

    (2) The costs must be assessed by a District Court Judge and are recoverable as if they were a fine.

    (3) Costs recoverable under this section are in addition to any penalty for which the person who committed the offence is liable.

    Compare: 1974 No 66 s 493(2)–(4)

    Section 176(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Administration of enforcement functions

177 Appointment of enforcement officer
  • (1) A local authority may appoint persons to be enforcement officers in the district or region of the local authority in relation to any offence under this Act, including, without limitation,—

    • (a) offences against bylaws made under this Act:

    • (b) infringement offences provided for by regulations made under section 259.

    (2) A local authority must issue warrants in writing to enforcement officers appointed under this section, specifying—

    • (a) the responsibilities and powers delegated to them; and

    • (b) the infringement offences in relation to which they are appointed.

    (3) An enforcement officer must produce his or her warrant and evidence of identity whenever reasonably required to do so by any person.

    (4) Enforcement officers may exercise the power to seize an object under section 164.

Powers of enforcement officers

178 Enforcement officers may require certain information
  • If an enforcement officer believes on reasonable grounds that a person is committing or has committed an offence under this Act, the officer may direct the person to give—

    • (a) his or her name and address; and

    • (b) the name and address and whereabouts of any other person connected in any way with the alleged offence.

Administration of enforcement may be contracted out

179 Contracting out administration of enforcement
  • (1) A local authority may contract out to any other local authority or other person the administration of its regulatory functions, including, without limitation, the operational aspects of enforcement, inspection, licensing, and other administrative matters.

    (2) If any aspects of the administration of bylaws or other regulatory functions of the local authority are contracted out under this section, the local authority retains responsibility for the manner in which those tasks are undertaken, including legal responsibility.

Enforcement of regional council bylaws

180 Enforcement and administration of regional council bylaws
  • (1) If a regional council has made a bylaw under subpart 1, a territorial authority with jurisdiction in that region may, with the consent of the regional council, undertake within its district the enforcement and administration of that bylaw.

    (2) If a bylaw is enforced and administered under subsection (1), fines imposed for breaches committed within the district must—

    • (a) be dealt with by the territorial authority as if they were fines imposed for breaches of a bylaw of that territorial authority; and

    • (b) subject to section 73 of the Public Finance Act 1989, be paid to the relevant territorial authority.

    Compare: 1974 No 66 s 687

Subpart 3Powers in relation to private land

Construction of works

181 Construction of works on private land
  • (1) A local authority may construct works on or under private land or under a building on private land that it considers necessary for—

    • (a) the supply by territorial authorities of water by means of reticulated systems:

    • (b) the supply of water through water races:

    • (c) trade wastes disposal:

    • (d) land drainage and rivers clearance.

    (2) A territorial authority may construct works on or under private land or under a building on private land that it considers necessary for sewage and stormwater drainage.

    (3) A local authority or a territorial authority, as the case may be, must not exercise the power in subsection (1) or subsection (2) unless it has—

    • (a) the prior written consent of the owner of the land to the construction of the work; or

    (4) A local authority may enter the land to inspect, alter, renew, repair, or clean any work constructed under this section or under the corresponding provision of a former Act.

    (5) The power in subsection (4) must not be exercised without first giving reasonable notice of the intention to enter the land to the owner and occupier (if any).

    (6) This section applies subject to the Public Works Act 1981 as to compensation for injurious affection to land.

    Compare: 1974 No 66 s 708

    Section 181(1)(a): substituted, on 7 July 2004, by section 18 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Powers of entry

182 Power of entry to check utility services
  • (1) An enforcement officer of a local authority may enter any land or building (but not a dwellinghouse) for the purpose of ascertaining whether—

    • (a) water supplied from any waterworks or water race to any land or building is being wasted or misused; or

    • (b) any drainage works on any land are being misused; or

    • (c) any appliance or equipment associated with a local authority utility service on the land is in a condition that makes it dangerous to life or property.

    (2) The power under subsection (1) may only be exercised if the enforcement officer—

    • (a) believes on reasonable grounds that the circumstances in any of paragraph (a), paragraph (b), or paragraph (c) of that subsection exist; and

    • (b) the local authority gives reasonable notice to the occupier of the land or building of the intention to exercise the power.

    (3) If an enforcement officer is refused entry or obstructed when exercising the power in subsection (1), the local authority may restrict the water supply to the land or building, as provided for in section 193.

    Compare: 1974 No 66 s 709

Powers relating to owners and occupiers of land

183 Removal of fire hazards
  • (1) A territorial authority may, by notice in writing, require the occupier or (if there is no occupier) the owner of land to cut down, eradicate, or remove any growth on the land or to remove or destroy any matter on the land if the growth or matter is likely to become a source of danger from fire in the opinion of—

    • (a) the chief executive officer of the territorial authority; or

    • (b) the Chief Fire Officer of the New Zealand Fire Service; or

    (2) A resident of the district may, by notice in writing to a territorial authority, request the territorial authority to issue a notice under this section.

    (3) If the territorial authority has not, within 1 month after the notice, complied with the request, the resident may apply to a District Court for an order requiring the territorial authority to comply with the request.

    (4) On hearing the application, the court may order that the territorial authority comply with the request or cancel the request.

    (5) A territorial authority may, after oral notice from an authorised officer of the territorial authority to the occupier or (if there is no occupier) the owner, eradicate or remove growth or remove or destroy matter on land in its district if the growth or matter is an imminent danger to life, property, or any road.

    (6) The cost of work done under subsection (5) is a charge on the land.

    (7) The powers in this section—

    • (a) are in addition to any powers a territorial authority has under any other enactment; and

    • (b) may be exercised in accordance with any agreement or arrangement under section 14(2) of the Forest and Rural Fires Act 1977.

    (8) In this section,—

    cut down means cutting down and keeping cut down, or removing or controlling by chemical means, the stem and roots of a tree so as to prevent the tree from throwing out leaves, offshoots, or flowers

    growth means broom, gorse, scrub, weeds, undergrowth, dry grass, or other growth on land, whether or not it is standing or growing

    matter means accumulated refuse or flammable waste.

    Compare: 1974 No 66 s 650

184 Rights and obligations if notice given under section 183(1)
  • (1) This section applies if a notice is given under section 183(1).

    (2) The owner or occupier may, within 10 days after service of the notice, apply to a District Court for an order cancelling the notice.

    (3) On hearing the application, the District Court may confirm the notice or cancel the notice.

    (4) An owner or occupier, as the case may be, must comply with a notice within 1 month after—

    • (a) the notice is served on the owner or occupier; or

    • (b) if the owner or occupier applies to a District Court under subsection (2), the court confirms the order.

    (5) If the owner or occupier fails to comply with subsection (4), the territorial authority may enter the land and do the thing or things required by the notice.

    (6) The territorial authority may recover from the owner or occupier the cost of anything done under subsection (5).

    (7) The costs are a charge on the land.

Default by owner or occupier

185 Occupier may act if owner of premises makes default
  • (1) If an owner of premises defaults in doing any work required by or under this Act, the occupier of the premises, with the approval of the local authority, may do the work.

    (2) If the occupier of the premises does the work under subsection (1), or is compelled to do any work or pay any money that ought primarily to be done or paid by the owner of the premises,—

    • (a) the occupier is entitled to be paid by the owner for the work done or money paid; and

    • (b) the occupier may deduct the amount of the expense or the money paid from any rent due from the occupier to the owner.

    Compare: 1974 No 66 s 672

186 Local authority may execute works if owner or occupier defaults
  • (1) This section applies if an owner or occupier of private premises is required to execute, provide, or do any works, materials, or things on, or in connection with, any premises or other matter, and—

    • (a) the owner or occupier, after notice requiring him or her to do so, defaults in commencing to comply within the time specified in the notice or, if no time is specified in the notice, within a reasonable time; or

    • (b) the work is certified in writing by an officer of the local authority to be urgent, and the contents of the certificate have been communicated to the owner or occupier, and the default is made for 24 hours after the time of the communication; and

    • (c) in either case, the owner or occupier does not proceed with the work with all reasonable expedition.

    (2) The local authority may, if it thinks fit,—

    • (a) itself execute, provide, or do the works, materials, and things; and

    • (b) recover from the owner or occupier as a debt the cost of doing so.

    (3) Money payable to the local authority under subsection (2) is recoverable from the owner or occupier, as the case may be, together with reasonable administration charges.

    (4) However, the person primarily liable under subsection (3) is the owner or occupier in default, as the case may be.

    (5) The local authority—

    • (a) may destroy, sell, or otherwise dispose of any materials resulting from doing any work under this section; and

    • (b) must apply the proceeds of sale towards payment of the amount payable under subsection (2) and pay the surplus (if any) to the owner.

    (6) The exercise of powers under this section by the local authority does not relieve any person from any penalty for failing to comply with the requirements of a notice under this Act.

    (7) Any work done or to be done by the local authority under this section is a public work for the purposes of the Public Works Act 1981.

    Compare: 1974 No 66 s 676

    Section 186(1)(b): amended, on 27 November 2010, by section 35(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 186(5)(b): amended, on 27 November 2010, by section 35(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Recovery of costs

187 Recovery of cost of works by local authority
  • If the default of a person in doing an act is an offence under this Act and the local authority or any officer of the local authority is authorised to do the act in default, the local authority may recover from the person in default the cost of doing the work, together with reasonable administrative and supervision charges.

    Compare: 1974 No 66 s 677

188 Liability for payments in respect of private land
  • If, under this Act or any other enactment, money paid for expenses incurred by the local authority in relation to private land is a charge on the land, the omission to register the charge does not affect—

    • (a) the liability of the person who is liable to pay the amount; or

    • (b) the rights of the local authority under the charge as against the person.

    Compare: 1974 No 66 s 678

Compulsory acquisition of land

189 Power to acquire land
  • (1) A local authority may purchase, or take in the manner provided in the Public Works Act 1981, any land or interest in land, whether within or outside its district, that may be necessary or convenient for the purposes of, or in connection with, any public work that the local authority was empowered to undertake, construct, or provide immediately before 1 July 2003.

    (2) All land taken, purchased, or acquired under the Public Works Act 1981 is vested in the local authority for the purpose for which it was acquired and is subject to the provisions of that Act as to a change of the purpose or its disposal.

    Compare: 1974 No 66 s 247F

190 Compensation payable by local authority for land taken or injuriously affected
  • (1) This section applies to a person having an estate or interest in land—

    • (a) taken under the authority of this Act for any public work; or

    • (b) injuriously affected by any public work; or

    • (c) suffering any damage from the exercise of any of the powers given by this Act.

    (2) A person is entitled to full compensation from the local authority for the matters referred to in subsection (1)(a), (b), or (c) to the extent provided in the Public Works Act 1981.

    (3) The compensation may be claimed and must be determined in the manner provided by the Public Works Act 1981.

    Compare: 1974 No 66 s 247G

Nuisance

191 Local authority not authorised to create nuisance
  • This subpart does not entitle a local authority—

    • (a) to create a nuisance; or

    • (b) to deprive the Crown or any person of any right or remedy the Crown or the person would otherwise have against the local authority or any other person in respect of any nuisance.

    Compare: 1974 No 66 s 247H

Subpart 4Powers in relation to water services and trade wastes

Water supply

192 Wastage of water
  • A person who is supplied with reticulated water by, or on behalf of, a local authority must not waste the water or allow it to be wasted.

    Compare: 1974 No 66 s 382

193 Power to restrict water supply
  • (1) The water supply to a person's land or building may be restricted by a local government organisation in any manner it thinks fit if the person—

    • (a) commits an offence against this subpart; or

    • (b) fails or refuses to do anything required by this Part in respect of water, water pipes, waterworks, or water races; or

    • (ba) fails to comply with any bylaw of a local authority that relates—

      • (i) to water, water pipes, waterworks, water races, or water supply; and

      • (ii) to the person's land or building; or

    • (c) fails or refuses to do anything that he or she has undertaken or agreed to do in respect of the water supply to his or her land or building; or

    • (d) refuses entry to, or obstructs, an enforcement officer under section 182.

    (2) Restriction of the water supply under subsection (1) must not create unsanitary conditions in, or associated with, the land or building.

    (3) Restriction of the water supply under subsection (1) is subject to section 69S of the Health Act 1956.

    Section 193(1)(ba): substituted, on 28 June 2006, by section 21 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 193(3): added, on 1 July 2008, by section 16 of the Health (Drinking Water) Amendment Act 2007 (2007 No 92).

194 Power to stop water services
  • [Repealed]

    Section 194: repealed, on 1 July 2008, by section 17 of the Health (Drinking Water) Amendment Act 2007 (2007 No 92).

Discharge of sewage and trade wastes

195 Discharge of sewage
  • (1) The discharge of domestic sewage into a sewerage drain under the control of a local authority in accordance with the bylaws of the local authority, and the discharge of trade wastes into a sewerage drain in accordance with trade wastes bylaws, is not a breach of—

    • (a) this Act; or

    (2) However, this section does not absolve a local authority from liability for the discharge, in contravention of this Part or of the Resource Management Act 1991, of a contaminant from a sewerage drain under the control of the local authority.

    (3) The Minister of Health may, by notice in the Gazette, declare that a bylaw made by a local authority and specified in the notice is a trade wastes bylaw for the purposes of this section.

    Compare: 1974 No 66 s 498

    Section 195(1)(c): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

196 Discharge of trade wastes
  • (1) The occupier of trade premises within the district of a territorial authority may discharge into the sewerage drains under the control of the territorial authority trade wastes proceeding from those premises either—

    • (a) with the consent of the territorial authority; or

    • (b) without consent if, and to the extent that, the discharge is permitted by trade wastes bylaws.

    (2) This section does not override any trade wastes bylaws, or the Resource Management Act 1991.

    Compare: 1974 No 66 s 499

Subpart 5Development contributions

197AA Purpose of development contributions
  • The purpose of the development contributions provisions in this Act is to enable territorial authorities to recover from those persons undertaking development a fair, equitable, and proportionate portion of the total cost of capital expenditure necessary to service growth over the long term.

    Section 197AA: inserted, on 8 August 2014, by section 50 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

197AB Development contributions principles
  • All persons exercising duties and functions under this subpart must take into account the following principles when preparing a development contributions policy under section 106 or requiring development contributions under section 198:

    • (a) development contributions should only be required if the effects or cumulative effects of developments will create or have created a requirement for the territorial authority to provide or to have provided new or additional assets or assets of increased capacity:

    • (b) development contributions should be determined in a manner that is generally consistent with the capacity life of the assets for which they are intended to be used and in a way that avoids over-recovery of costs allocated to development contribution funding:

    • (c) cost allocations used to establish development contributions should be determined according to, and be proportional to, the persons who will benefit from the assets to be provided (including the community as a whole) as well as those who create the need for those assets:

    • (d) development contributions must be used—

      • (i) for or towards the purpose of the activity or the group of activities for which the contributions were required; and

      • (ii) for the benefit of the district or the part of the district that is identified in the development contributions policy in which the development contributions were required:

    • (e) territorial authorities should make sufficient information available to demonstrate what development contributions are being used for and why they are being used:

    • (f) development contributions should be predictable and be consistent with the methodology and schedules of the territorial authority’s development contributions policy under sections 106, 201, and 202:

    • (g) when calculating and requiring development contributions, territorial authorities may group together certain developments by geographic area or categories of land use, provided that—

      • (i) the grouping is done in a manner that balances practical and administrative efficiencies with considerations of fairness and equity; and

      • (ii) grouping by geographic area avoids grouping across an entire district wherever practical.

    Section 197AB: inserted, on 8 August 2014, by section 50 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

197 Interpretation
  • (1) In this subpart and Schedule 13,—

    allotment has the meaning given to it in section 218(2) of the Resource Management Act 1991

    development means—

    • (a) any subdivision, building (as defined in section 8 of the Building Act 2004), land use, or work that generates a demand for reserves, network infrastructure, or community infrastructure; but

    • (b) does not include the pipes or lines of a network utility operator

    methodology means the methodology for calculating development contributions set out in Schedule 13

    network utility operator has the meaning given to it by section 166 of the Resource Management Act 1991.

    (2) In this Act, unless the context otherwise requires,—

    accommodation units means units, apartments, rooms in 1 or more buildings, or cabins or sites in camping grounds and holiday parks, for the purpose of providing overnight, temporary, or rental accommodation

    community facilities means reserves, network infrastructure, or community infrastructure for which development contributions may be required in accordance with section 199

    community infrastructure means the following assets when owned, operated, or controlled by a territorial authority:

    • (a) community centres or halls for the use of a local community or neighbourhood, and the land on which they are or will be situated:

    • (b) play equipment that is located on a neighbourhood reserve:

    • (c) toilets for use by the public

    development agreement means a voluntary contractual agreement made under sections 207A to 207F between 1 or more developers and 1 or more territorial authorities for the provision, supply, or exchange of infrastructure, land, or money to provide network infrastructure, community infrastructure, or reserves in 1 or more districts or a part of a district

    development contribution means a contribution—

    • (a) provided for in a development contribution policy of a territorial authority; and

    • (b) calculated in accordance with the methodology; and

    • (c) comprising—

      • (i) money; or

      • (ii) land, including a reserve or esplanade reserve (other than in relation to a subdivision consent), but excluding Māori land within the meaning of Te Ture Whenua Maori Act 1993, unless that Act provides otherwise; or

      • (iii) both

    development contribution objection means an objection lodged under clause 1 of Schedule 13A against a requirement to make a development contribution

    development contribution policy means the policy on development contributions adopted under section 102(1)

    development contributions commissioner means a person appointed under section 199F

    network infrastructure means the provision of roads and other transport, water, wastewater, and stormwater collection and management

    objector means a person who lodges a development contribution objection

    resource consent has the meaning given to it in section 2(1) of the Resource Management Act 1991 and includes a change to a condition of a resource consent under section 127 of that Act

    service connection means a physical connection to a service provided by, or on behalf of, a territorial authority.

    Section 197(1): amended, on 28 June 2006, by section 22(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 197(1) community facilities: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(1) community infrastructure: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(1) development paragraph (a): amended, on 8 August 2014, by section 51(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(1) development contribution: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(1) development contribution policy: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(1) network infrastructure: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(1) service connection: repealed, on 5 December 2012, by section 30(1) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(2): inserted, on 5 December 2012, by section 30(2) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

    Section 197(2) accommodation units: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) community infrastructure: replaced, on 8 August 2014, by section 51(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) development agreement: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) development contribution objection: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) development contributions commissioner: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) objector: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 197(2) resource consent: inserted, on 8 August 2014, by section 51(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Contributions may be required by territorial authorities

198 Power to require contributions for developments
  • (1) A territorial authority may require a development contribution to be made to the territorial authority when—

    • (b) a building consent is granted under the Building Act 2004 for building work situated in its district (whether by the territorial authority or a building consent authority):

    • (c) an authorisation for a service connection is granted.

    (2) A territorial authority may only require the development contribution as provided for in a policy adopted under section 102(1) that is consistent with section 201.

    (2A) For the purposes of subsection (2), a development contribution must be consistent with the content of the policy adopted under section 102(1) that was in force at the time that the application for a resource consent, building consent, or service connection was submitted, accompanied by all required information.

    (3) A requirement for a development contribution under subsection (1)(a) or (1)(b) is not—

    • (a) a condition of a resource consent that gives rise to any right of objection or appeal; or

    • (b) as the case may be, a matter that gives rise to any right to apply to the chief executive for a determination under the Building Act 2004.

    (4) Subsection (3) is for the avoidance of doubt.

    (4A) If a development contribution policy provides for a development contribution under subsection (1)(b), the territorial authority may require that development contribution to be made when granting a certificate of acceptance under section 98 of the Building Act 2004 if a development contribution would have been required had a building consent been granted for the building work in respect of which the certificate is granted.

    (5) In this section,—

    building consent authority means a person whose name is entered in the register referred to in section 273(1)(a) of the Building Act 2004

    chief executive has the meaning given to it in section 7 of the Building Act 2004.

    Section 198(1): substituted, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 198(1): amended, on 28 June 2006, by section 23(1) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 198(1)(b): amended, on 28 June 2006, by section 23(2) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 198(2): amended, on 8 August 2014, by section 52(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 198(2): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

    Section 198(2A): inserted, on 8 August 2014, by section 52(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 198(3): substituted, on 28 June 2006, by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 198(4): added, on 28 June 2006, by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 198(4A): inserted, on 8 August 2014, by section 52(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 198(5): added, on 28 June 2006, by section 23(3) of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

198A Restrictions on power to require contributions for reserves
  • (1) Despite section 198(1), a territorial authority may not require a development contribution to be made to the territorial authority for the provision of any reserve—

    • (a) if the development is non-residential in nature; or

    • (b) for the non-residential component of a development that has both a residential component and a non-residential component.

    (2) For the purpose of subsection (1), accommodation units are deemed to be residential.

    (3) In this section, reserve does not include land that forms or is to form part of any road or is used or is to be used for stormwater management purposes.

    Section 198A: inserted, on 8 August 2014, by section 53 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199 Basis on which development contributions may be required
  • (1) Development contributions may be required in relation to developments if the effect of the developments is to require new or additional assets or assets of increased capacity and, as a consequence, the territorial authority incurs capital expenditure to provide appropriately for—

    • (a) reserves:

    • (b) network infrastructure:

    • (c) community infrastructure.

    (2) This section does not prevent a territorial authority from requiring a development contribution that is to be used to pay, in full or in part, for capital expenditure already incurred by the territorial authority in anticipation of development.

    (3) In subsection (1), effect includes the cumulative effects that a development may have in combination with other developments.

    Section 199(2): amended, on 8 August 2014, by section 54(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 199(3): amended, on 8 August 2014, by section 54(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199A Right to reconsideration of requirement for development contribution
  • (1) If a person is required by a territorial authority to make a development contribution under section 198, the person may request the territorial authority to reconsider the requirement if the person has grounds to believe that—

    • (a) the development contribution was incorrectly calculated or assessed under the territorial authority’s development contributions policy; or

    • (b) the territorial authority incorrectly applied its development contributions policy; or

    • (c) the information used to assess the person’s development against the development contributions policy, or the way the territorial authority has recorded or used it when requiring a development contribution, was incomplete or contained errors.

    (2) A request for a reconsideration must be lodged and decided according to the procedure set out in a development contributions policy under section 202A(2).

    (3) A request for a reconsideration must be made within 10 working days after the date on which the person lodging the request receives notice from the territorial authority of the level of development contribution that the territorial authority requires.

    (4) A person may not apply for a reconsideration of a requirement if the person has already lodged an objection to that requirement under section 199C and Schedule 13A.

    Section 199A: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199B Territorial authority to notify outcome of reconsideration
  • (1) The territorial authority must, within 15 working days after the date on which it receives all required relevant information relating to a request, give written notice of the outcome of its reconsideration to the person who made the request.

    (2) A person who requested a reconsideration may object to the outcome of the reconsideration in accordance with section 199C.

    Section 199B: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199C Right to object to assessed amount of development contribution
  • (1) A person may, on any ground set out in section 199D, object to the assessed amount of the development contribution that a territorial authority has required from the person under section 198, advised in—

    • (a) a notice given to the person for that purpose by the territorial authority; or

    • (b) if notice has not been given, such other formal advice of the requirement that the territorial authority has given to the person.

    (2) The right of objection conferred by subsection (1) applies irrespective of whether a reconsideration of the requirement for a development contribution under section 199A has been requested.

    (3) The right of objection conferred by this section does not apply to challenges to the content of a development contributions policy prepared in accordance with section 102.

    Section 199C: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199D Scope of development contribution objections
  • An objection under section 199C may be made only on the ground that a territorial authority has—

    • (a) failed to properly take into account features of the objector's development that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities in the territorial authority's district or parts of that district; or

    • (b) required a development contribution for community facilities not required by, or related to, the objector’s development, whether on its own or cumulatively with other developments; or

    • (c) required a development contribution in breach of section 200; or

    • (d) incorrectly applied its development contributions policy to the objector’s development.

    Section 199D: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199E Procedure for development contribution objections
  • Schedule 13A applies in relation to objections under section 199C.

    Section 199E: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199F Appointment and register of development contributions commissioners
  • (1) The Minister must appoint suitable persons as approved development contributions commissioners who are to decide development contribution objections.

    (2) The Minister must compile and keep a register of approved development contributions commissioners.

    (3) The Minister must ensure that the persons named in the register individually or collectively have—

    • (a) knowledge and experience in adjudication and mediation, including the conduct of hearings or inquiries; and

    • (b) knowledge, skills, and experience relevant to the subject matter likely to arise in an objection; and

    • (c) knowledge of tikanga Māori.

    (4) The Minister may, by notice in the Gazette, specify additional criteria for the appointment of development contributions commissioners (being in addition to, but not inconsistent with, the criteria specified in subsection (3)).

    (5) Before compiling the register or specifying additional appointment criteria, the Minister must consult persons that the Minister considers are representative of parties that are most likely to be participants in development contribution objections.

    (6) The term of appointment for a development contributions commissioner on the register expires—

    • (a) 3 years after the date on which his or her appointment takes effect; or

    • (b) at the close of the term of his or her reappointment; or

    • (c) at the close of the extension of his or her term; or

    • (d) as soon after the completion of his or her term of appointment or reappointment as is necessary to enable him or her to complete any outstanding work, but not later than the notification of his or her final decision as a commissioner.

    (7) The Minister must notify all appointments of approved development contributions commissioners in the Gazette.

    Section 199F: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199G Removal of development contributions commissioners
  • The Minister may remove any development contributions commissioner from the register kept under section 199F, but only—

    • (a) because of the criminal activity or other misconduct of the commissioner; or

    • (b) if the commissioner is unable to perform the functions of office; or

    • (c) if the commissioner has neglected his or her duty.

    Section 199G: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199H Who may decide development contribution objections
  • (1) Any person named in the register of approved development contributions commissioners and selected by a territorial authority in accordance with clause 3 of Schedule 13A to decide a development contribution objection may hear and decide the objection.

    (2) A person who is not named in the register of approved development contributions commissioners may hear and decide a development contribution objection only if—

    • (a) the territorial authority is satisfied that—

      • (i) the objection relates to matters that require skills or knowledge that is not available from persons named in the register who are available to deal with the objection; and

      • (ii) another suitable person with such skills or knowledge is available to deal with the objection; and

    • (b) the Minister approves the territorial authority's selection of that other person to decide the objection.

    (3) A person approved by the Minister under subsection (2)(b) must be treated as a development contributions commissioner for the period necessary to enable the person to decide the relevant objection.

    Section 199H: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199I Development contribution objection hearings
  • (1) The applicable fees and allowances for a witness appearing at a development contribution objection hearing must be paid by the party on whose behalf the witness is called.

    (2) Before or at the hearing, a development contributions commissioner may request the objector or territorial authority to provide further information.

    (3) If information is requested before a hearing under subsection (2), the party required to provide the information must serve copies of it on the other parties to the objection.

    (4) Only the territorial authority and the objector have a right to be heard at the hearing of an objection. The commissioners may, at their discretion, invite any other person or organisation to attend and be heard to the extent allowed by the commissioners.

    (5) Part 2 of Schedule 13A sets out supplementary provisions that apply in relation to development contribution objection hearings.

    Section 199I: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199J Consideration of development contribution objection
  • When considering a development contribution objection and any evidence provided in relation to that objection, development contributions commissioners must give due consideration to the following:

    • (a) the grounds on which the development contribution objection was made:

    • (c) the provisions of the development contributions policy under which the development contribution that is the subject of the objection was, or is, required:

    • (d) the cumulative effects of the objector’s development in combination with the other developments in a district or parts of a district, on the requirement to provide the community facilities that the development contribution is to be used for or toward:

    • (e) any other relevant factor associated with the relationship between the objector’s development and the development contribution to which the objection relates.

    Section 199J: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199K Additional powers of development contributions commissioners
  • (1) In addition to his or her powers under section 199I and Schedule 13A, a development contributions commissioner has, for the purposes of a development contribution objection hearing, the following powers:

    • (a) to direct the order of business at the hearing, including the order in which evidence is presented and parties heard:

    • (b) to direct that evidence presented at the hearing be taken as read or presented within a stated time limit:

    • (c) to direct that evidence be limited to the matters relevant to the dispute.

    (2) Whether or not a hearing is held, a development contributions commissioner may direct that briefs of evidence be provided within a specified period ending not later than,—

    • (a) if a hearing is to be held, 10 working days before the hearing commences; or

    • (b) in any other case, 10 working days before the date on which the commissioner or commissioners intend to begin their consideration of the objection.

    (3) A development contributions commissioner may waive or extend any period specified in this section or Schedule 13A (except the period specified in clause 1(1) of Schedule 13A) if satisfied that exceptional circumstances exist.

    (4) A development contributions commissioner may, on his or her own initiative or on application from the objector or the territorial authority, make an order that prohibits the communication or publication of any information supplied to the commissioner, or obtained by the commissioner, in the course of deciding a development contribution objection, if satisfied that the order is necessary to avoid—

    • (a) serious offence to tikanga Māori or to avoid the disclosure of the location of wāhi tapu; or

    • (b) the disclosure of a trade secret or commercial information that, if released, would be prejudicial to the business or operations of any party to the objection.

    Section 199K: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199L Liability of development contributions commissioners
  • A development contributions commissioner is not liable for anything the commissioner does, or omits to do, in good faith in performing or exercising the functions, duties, responsibilities, and powers of a development contributions commissioner under this Act.

    Section 199L: inserted, on 8 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199M Residual powers of territorial authority relating to development contribution objection decision
  • (1) This section applies to a decision of a development contributions commissioner.

    (2) The territorial authority affected by the decision retains all the functions, duties, responsibilities, and powers of a territorial authority in relation to the requirement for the development contribution that is the subject of the decision as if the decision had been made by the territorial authority.

    (3) Subsection (2) does not confer on a territorial authority the power to change, amend, or overturn a decision made by a development contributions commissioner.

    (4) However, nothing in subsection (3) affects a territorial authority's right to apply for judicial review of a decision made by a development contributions commissioner.

    Section 199M: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199N Objector’s right to apply for judicial review unaffected
  • Nothing in this subpart affects the right of an objector to a development contribution to apply for judicial review of a decision made by a development contributions commissioner.

    Section 199N: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199O Territorial authority to provide administrative support for development contributions commissioners
  • A territorial authority must supply all secretarial and administrative services necessary to enable development contributions commissioners to perform their functions under this Act.

    Section 199O: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

199P Interim effect of development contribution objection
  • (1) If a development contribution objection is lodged, the territorial authority may still require the development contribution to be made, but must not use it until the objection has been determined.

    (2) If a territorial authority does not require a development contribution to be made pending the determination of an objection, the territorial authority may withhold certificates or permissions in accordance with section 208 until the objection has been determined.

    Section 199P: inserted (with effect on 1 July 2014), on 7 August 2014, by section 55 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Conditions relevant to requirement for contributions

200 Limitations applying to requirement for development contribution
  • (1) A territorial authority must not require a development contribution for a reserve, network infrastructure, or community infrastructure if, and to the extent that—

    • (a) it has, under section 108(2)(a) of the Resource Management Act 1991, imposed a condition on a resource consent in relation to the same development for the same purpose; or

    • (b) the developer will fund or otherwise provide for the same reserve, network infrastructure, or community infrastructure; or

    • (ba) the territorial authority has already required a development contribution for the same purpose in respect of the same building work, whether on the granting of a building consent or a certificate of acceptance; or

    • (c) a third party has funded or provided, or undertaken to fund or provide, the same reserve, network infrastructure, or community infrastructure.

    (2) This subpart does not prevent a territorial authority from accepting from a person, with that person's agreement, additional contributions for reserves, network infrastructures, or community infrastructures.

    (3) This section does not prevent a territorial authority from requiring a development contribution if—

    • (a) income from the following is being used or will be used to meet a proportion of the capital costs of the community facilities for which the development contribution will be used:

      • (i) rates:

      • (ii) fees and charges:

      • (iii) interest and dividends from investments:

      • (iv) borrowings:

      • (v) proceeds from asset sales; or

    • (b) a person required to make the development contribution is also a ratepayer in the territorial authority’s district or has paid or will pay fees or charges in respect of the facilities.

    (4) Despite subsection (1)(ba), a territorial authority may require another development contribution to be made for the same purpose if the further development contribution is required to reflect an increase in the scale or intensity of the development since the original contribution was required.

    Section 200(1)(ba): inserted, on 8 August 2014, by section 56(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 200(1)(c): replaced, on 8 August 2014, by section 56(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 200(3): inserted, on 8 August 2014, by section 56(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 200(4): inserted, on 8 August 2014, by section 56(3) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Development contributions policy

201 Contents of development contributions policy
  • (1) If a territorial authority has determined to seek funding for community facilities under this subpart, the policy required by section 102(1) must include, in summary form, in addition to the matters set out in section 106,—

    • (a) an explanation of, and justification for, the way each development contribution in the schedule required by subsection (2) is calculated; and

    • (b) the significant assumptions underlying the calculation of the schedule of development contributions, including an estimate of the potential effects, if there is a significant level of uncertainty as to the scope and nature of the effects; and

    • (c) the conditions and criteria (if any) that will apply in relation to the remission, postponement, or refund of development contributions, or the return of land; and

    • (d) the basis on which the value of additional allotments or land is assessed for the purposes of section 203(1).

    (2) A development contributions policy must contain a schedule in accordance with section 202.

    Section 201(1): amended, on 27 November 2010, by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

201A Schedule of assets for which development contributions will be used
  • (1) If a territorial authority has determined to seek funding for community facilities under this subpart, the policy required by section 102 must include, in addition to the matters set out in sections 106 and 201, a schedule that lists—

    • (a) each new asset, additional asset, asset of increased capacity, or programme of works for which the development contributions requirements set out in the development contributions policy are intended to be used or have already been used; and

    • (b) the estimated capital cost of each asset described in paragraph (a); and

    • (c) the proportion of the capital cost that the territorial authority proposes to recover through development contributions; and

    • (d) the proportion of the capital cost that the territorial authority proposes to recover from other sources.

    (2) For the purposes of subsection (1), assets for which development contributions are required can be grouped together into logical and appropriate groups of assets that reflect the intended or completed programmes of works or capacity expansion.

    (3) A schedule under subsection (1) must also include assets for which capital expenditure has already been incurred by a territorial authority in anticipation of development.

    (4) Information in the schedule under subsection (1) must group assets according to the district or parts of the district for which the development contribution is required, and by the activity or group of activities for which the development contribution is required.

    (5) A territorial authority may make changes to the schedule required by subsection (1) at any time without consultation or further formality, but only if—

    • (a) the change is being made to reflect a change of circumstances in relation to an asset that is listed in the schedule or is to be added to the schedule; and

    • (b) the change does not increase the total or overall development contribution that will be required to be made to the territorial authority.

    (6) If the territorial authority is satisfied that the schedule or any part of it is too large or impractical to print in hard copy form, the territorial authority may—

    • (a) provide the schedule in a publicly accessible electronic format; and

    • (b) provide and maintain an electronic link from the development contributions policy to the schedule (if the policy is on the Internet) or state where a hard copy of the schedule can be found and inspected.

    (7) Subject to sections 204, 205, and 206, a territorial authority may use a development contribution for or towards any assets other than those set out in the schedule required by subsection (1) as at the time the development contribution was required, if—

    • (a) the assets are for the same general function and purpose as those that were set out in the schedule required under subsection (1) as at the time the development contribution was required; and

    • (b) the schedule required by subsection (1) has been updated in accordance with subsection (5), or will be updated when the development contributions policy is next changed or reviewed, to identify the assets that the development contribution has been, or is intended to be, used for or towards.

    Section 201A: inserted, on 8 August 2014, by section 57 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

202 Contents of section 201 schedule
  • (1) The schedule of development contributions required by section 201(2) must specify—

    • (a) the development contributions payable in each district, calculated, in each case, in accordance with the methodology in respect of—

      • (i) reserves; and

      • (ii) network infrastructure; and

      • (iii) community infrastructure; and

    • (b) the event that will give rise to a requirement for a development contribution under section 198, whether upon granting—

      • (iii) an authorisation for a service connection.

    (2) If different development contributions are payable in different parts of the district, subsection (1) applies in relation to the parts of the district.

    (3) The specifications required under subsection (1) or subsection (2) must be given separately in relation to each activity or group of activities for which separate development contributions are required.

    Section 202 heading: amended, on 8 August 2014, by section 58 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 202(1)(b)(ii): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

202A Reconsideration process to be in development contributions policy
  • (1) If a territorial authority has determined to seek funding for community facilities under this subpart, the policy required by section 102 must, in addition to the matters set out in sections 106 and 201 to 202, and subject to any regulations made under section 259(1)(e) or (f), set out the process for requesting reconsideration of a requirement under section 199A.

    (2) The process for reconsideration must set out—

    • (a) how the request can be lodged with the territorial authority; and

    • (b) the steps in the process that the territorial authority will apply when reconsidering the requirement to make a development contribution.

    Section 202A: inserted, on 8 August 2014, by section 59 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

203 Maximum development contributions not to be exceeded
  • (1) Development contributions for reserves must not exceed the greater of—

    • (a) 7.5% of the value of the additional allotments created by a subdivision; and

    • (b) the value equivalent of 20 square metres of land for each additional household unit or accommodation unit created by the development.

    (2) Development contributions for network infrastructure or community infrastructure must not exceed the amount calculated by multiplying the cost of the relevant unit of demand calculated under clause 1 of Schedule 13 by the number of units of demand assessed for a development or type of development, as provided for in clause 2 of Schedule 13, and as amended for any Producers Price Index adjustment adopted in a development contributions policy in accordance with section 106(2B).

    Section 203(1)(b): amended, on 8 August 2014, by section 60(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 203(2): amended, on 8 August 2014, by section 60(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Use of development contributions

204 Use of development contributions by territorial authority
  • (1) A development contribution—

    • (a) must be used for, or towards, the capital expenditure of the reserve, network infrastructure, or community infrastructure for which the contribution was required, which may also include the development of the reserve, network infrastructure, or community infrastructure; but

    • (b) must not be used for the maintenance of the reserve, network infrastructure, or community infrastructure.

    (2) Subsection (1) is subject to section 205.

205 Use of development contributions for reserves
  • A territorial authority must use a development contribution received for reserves purposes for the purchase or development of reserves within its district, which may include—

    • (a) the development of community or recreational facilities associated with the use of a reserve:

    • (b) the provision or improvement of recreational facilities at a school established or about to be established under Part 12 of the Education Act 1989, if—

      • (i) a licence has been granted under section 6A of the Education Lands Act 1949 or section 70B of the Education Act 1989 in relation to the use or occupation of the community recreational facilities; and

      • (ii) the Minister for Sport and Recreation has notified the local authority in writing that he or she is satisfied that the licence provides for the reasonable use of the community recreational facilities by members of the public:

    • (c) the purchase of land or an interest in land—

      • (ii) that is, or will be, subject to a conservation covenant under section 77 of the Reserves Act 1977:

    • (d) payment, on terms and conditions the territorial authority thinks fit, to—

      • (i) another local authority or public body in which land in the district is vested to enlarge, enhance, or develop the land for public recreation purposes:

      • (ii) the administering body of a reserve held under the Reserves Act 1977 to enlarge, enhance, or develop the reserve:

      • (iii) the trustees or body corporate in whom is vested a Māori reservation to which section 340 of Te Ture Whenua Maori Act 1993 applies, to enhance the reservation for cultural or other purposes:

      • (iv) any person, to secure an appropriate interest in perpetuity in land for conservation purposes.

    Section 205(b)(i): amended, on 17 May 2006, by section 8(4) of the Education Amendment Act 2006 (2006 No 19).

206 Alternative uses of development contributions for reserves
  • Despite sections 197AB(d) and 205, if the territorial authority considers that the district in which the development is situated has adequate reserves, or that it is impracticable to purchase or develop reserves in that locality, it may, if it considers it will benefit the residents in the district in which the development is situated, use the development contributions—

    • (a) to add to, improve, or develop land outside the district that is vested in, or controlled by, the territorial authority for public recreation purposes:

    • (b) with the consent of the Minister and subject to the terms and conditions the Minister thinks fit, to make payments or advance money to a local authority or public body to add to, improve, or develop land outside the district that is vested in, or controlled by, the local authority or public body for public recreation purposes:

    • (c) if the territorial authority has control of the foreshore or the bed of a lake or a harbour under a coastal permit by virtue of section 384(1)(b) or section 425(3)(a) of the Resource Management Act 1991,—

      • (i) to improve or develop the foreshore (whether within or outside the district) for public recreational purposes:

      • (ii) to erect, improve, or develop for public recreational purposes—

        • (A) the bed of the harbour or of the sea immediately contiguous to the foreshore; or

        • (B) the bed of a lake (whether within or outside the district).

    Section 206: amended, on 8 August 2014, by section 61 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207 Power to use money collected and held under Local Government Act 1974 or Resource Management Act 1991
  • (1) This section applies to money collected—

    • (a) as contributions under Part 20 of the Local Government Act 1974:

    • (b) as contributions under sections 407 or 409 of the Resource Management Act 1991.

    (2) If, at the commencement of this subpart, a territorial authority holds money to which this section applies, the territorial authority may, with the written approval of the Minister, use the money as if it had been collected in accordance with this subpart,—

    • (a) in the case of money collected under Part 20 of the Local Government Act 1974, in accordance with this subpart; and

    • (b) in the case of money collected under sections 407 or 409 of the Resource Management Act 1991, in accordance with the conditions imposed under those sections.

Development agreements

  • Heading: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207A Request to enter development agreement
  • (1) A territorial authority may enter into a development agreement with a developer if—

    • (a) the developer has requested in writing that the territorial authority enter into a development agreement with the developer; or

    • (b) the territorial authority has requested in writing that the developer enter into a development agreement with the territorial authority.

    (2) This section does not limit section 12.

    Section 207A: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207B Response to request for development agreement
  • (1) A territorial authority that receives a written request from a developer to enter into a development agreement must consider that request without unnecessary delay.

    (2) The territorial authority may—

    • (a) accept the request in whole or in part subject to any amendments agreed to by the territorial authority and the developer; or

    • (b) decline the request.

    (3) The territorial authority must provide the developer who made the request with a written notice of its decision and the reasons for its decision.

    (4) A developer who receives a request from a territorial authority to enter into a development agreement may, in a written response to the territorial authority,—

    • (a) accept the request in whole or in part subject to any amendments agreed to by the territorial authority and the developer; or

    • (b) decline the request.

    Section 207B: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207C Content of development agreement
  • (1) A development agreement must be in writing and be signed by all parties that are to be bound by the agreement.

    (2) A development agreement must include—

    • (a) the legal name of the territorial authority that will be bound by the agreement; and

    • (b) the legal name of the developer that will be bound by the agreement; and

    • (c) a description of the land to which the agreement will relate, including its legal description and, if applicable,—

      • (i) the street address of the land; and

      • (ii) other identifiers of the location of the land, its boundaries, and extent; and

    • (d) details of the infrastructure (if any) that each party to the agreement will provide or pay for.

    (3) A development agreement may also include, without limitation, information relating to all or any of the following:

    • (a) a description of the development to which the agreement will relate:

    • (b) when infrastructure will be provided, including whether the infrastructure will be provided in stages:

    • (c) who will own, operate, and maintain the infrastructure being provided:

    • (d) the timing and arrangements of any vesting of infrastructure:

    • (e) the mechanism for the resolution of disputes under the agreement:

    • (f) the arrangements for, and timing of, any transfer of land between the territorial authority and the developer:

    • (g) the nature, amount, and timing of any monetary payments to be made between the parties to the agreement:

    • (h) the enforcement of the development agreement by a suitable means in the event of a breach, including, but not limited to,—

      • (i) a guarantee; or

      • (ii) a bond; or

      • (iii) a memorandum of encumbrance.

    Section 207C: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207D Effect of development agreement
  • (1) A development agreement is a legally enforceable contract.

    (2) A development agreement has no force until all parties that will be bound by the agreement have signed it.

    (3) A development agreement does not oblige a territorial authority or any other consent authority to—

    • (d) grant a certificate under section 224 of the Resource Management Act 1991; or

    • (e) grant an authorisation for a service connection.

    (4) A territorial authority or other consent authority must not refuse to grant or issue a consent, certificate, or authorisation (as the case may be) referred to in subsection (3) on the basis that a development agreement has not been entered into.

    (5) If there is any conflict between the content of a development agreement and the application of a relevant development contributions policy in relation to that agreement, the content of the development agreement prevails.

    Section 207D: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207E Restrictions on use of development agreement
  • (1) A development agreement must not require a developer to provide—

    • (a) infrastructure of a nature or type for which the developer would not otherwise have been required to make a development contribution; or

    • (b) infrastructure of a higher standard than that which would have been provided for if the developer had been required to make a development contribution; or

    • (c) infrastructure of a scale that would exceed the infrastructure that would otherwise have been provided for if the developer had been required to make a development contribution.

    (2) However, a developer may agree to provide infrastructure of a nature or scale that is additional to, of greater capacity than, or of a different type to the infrastructure that would have been provided if the developer had been required to make a development contribution.

    Section 207E: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

207F Amendment or termination of development agreement
  • (1) A development agreement may be amended at any time through mutual agreement of all parties who are signatories to the agreement.

    (2) A development agreement terminates—

    • (a) on a date set out in the development agreement; or

    • (b) on the date on which all actions, undertakings, or obligations that were agreed to by each of the signatories to the agreement have been fulfilled; or

    • (c) on a date mutually agreed in writing by all parties that are signatories to the agreement.

    Section 207F: inserted, on 8 August 2014, by section 62 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Powers to recover unpaid development contributions

208 Powers of territorial authority if development contributions not paid or made
  • Until a development contribution required in relation to a development has been paid or made under section 198, a territorial authority may,—

    • (b) in the case of a development contribution required under section 198(1)(b), withhold a code compliance certificate under section 95 of the Building Act 2004:

    • (ba) in the case of a development contribution required under section 198(4A), withhold a certificate of acceptance under section 99 of the Building Act 2004:

    • (c) in the case of a development contribution required under section 198(1)(c), withhold a service connection to the development:

    Section 208(b): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 208(ba): inserted, on 8 August 2014, by section 63 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Refund of development contributions

209 Refund of money and return of land if development does not proceed
  • (1) A territorial authority must refund or return to the consent holder or to his or her personal representative a development contribution paid or land set aside under this subpart if—

    • (a) the resource consent—

      • (i) lapses under section 125 of the Resource Management Act 1991; or

    • (b) the building consent lapses under section 52 of the Building Act 2004; or

    • (c) the development or building in respect of which the resource consent or building consent was granted does not proceed; or

    • (d) the territorial authority does not provide the reserve, network infrastructure, or community infrastructure for which the development contribution was required.

    (2) A territorial authority may retain any portion of a development contribution or land referred to in subsection (1) of a value equivalent to the costs incurred by the territorial authority in relation to the development or building and its discontinuance.

    Section 209(1)(b): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

210 Refund of money or return of land if not applied to specified reserve purposes
  • (1) If a development contribution has been required for a specified reserve purpose, a territorial authority must—

    • (a) refund money received for that purpose, if the money is not applied to that purpose within 10 years after the authority receives the money or other period specified in the development contribution policy; or

    • (b) return land acquired for the specified reserve purpose, if the authority does not use the land for that purpose within 10 years after the authority acquires the land or other period agreed by the territorial authority and the person who paid the development contribution.

    (2) A territorial authority may retain part of the money or land referred to in subsection (1) of a value equivalent to the costs of the authority in refunding the money or returning the land.

211 Application of other Acts

Subpart 6Removal orders

212 Interpretation
  • In sections 215 to 221 and Schedule 14, unless the context otherwise requires,—

    alter, in relation to a fence, structure, or vegetation, includes the removal of all or part of the fence, structure, or vegetation if that removal is associated with its rebuilding or re-erection or replanting in a form specified in the removal order

    applicant means a territorial authority or constable who applies for a removal order under section 215

    controlled drug has the meaning given to it by section 2(1) of the Misuse of Drugs Act 1975

    court means a District Court; and includes a District Court Judge

    crime involving dishonesty has the meaning given to it by section 2(1) of the Crimes Act 1961

    plan has the meaning given to it by section 2(1) of the Resource Management Act 1991

    proceeds means property that is derived or realised, directly or indirectly, by a person from the commission of a serious offence

    proposed plan has the meaning given to it by section 2(1) of the Resource Management Act 1991

    removal order or order means an order made under section 216 to remove or alter any fence, structure, or vegetation

    respondent means the person against whom an application for a removal order has been made; and includes a person against whom a removal order is made

    serious offence means an offence punishable by imprisonment for a term of 5 years or more

    tainted property means—

    • (a) property used to commit, or to facilitate the commission of, a serious offence:

    • (b) proceeds

    unauthorised weapon

    • (a) means an article made or altered for use, or capable of being used, for causing bodily injury; and

    • (b) includes, in respect of an offence against the Arms Act 1983 or an imprisonable offence committed or about to be committed,—

      • (i) a firearm, airgun, pistol, restricted weapon, or explosive, as those terms are defined in section 2 of the Arms Act 1983:

      • (ii) any ammunition.

    Compare: 1974 No 66 s 692ZC

    Section 212 applicant: amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 212 unauthorised weapon paragraph (b): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Application of rules of court

213 Application of District Courts Rules to removal orders
  • (1) Despite section 247, an application made under section 215 must be made in accordance with Part 8 of the District Courts Rules 2009 and any rules made under subsection (2) or section 214.

    (2) In addition to all the powers conferred by the District Courts Act 1947, the Governor-General may, from time to time, by Order in Council, make rules under that Act—

    • (a) regulating the practice and procedure of the District Court in proceedings relating to an application for a removal order; and

    (3) Rules made under the District Courts Act 1947 in accordance with this section are part of the District Courts Rules 2009.

    (4) In the absence of rules made under the District Courts Act 1947 in accordance with this section, or in a situation not covered by such rules, the District Courts Rules 2009 apply, with all necessary modifications, to proceedings relating to sections 215 to 221.

    Compare: 1974 No 66 ss 692ZD(6), 692ZN

    Section 213(1): amended, on 1 November 2009, pursuant to rule 17.1 of the District Courts Rules 2009 (SR 2009/257).

    Section 213(3): amended, on 1 November 2009, pursuant to rule 17.1 of the District Courts Rules 2009 (SR 2009/257).

    Section 213(4): amended, on 1 November 2009, pursuant to rule 17.1 of the District Courts Rules 2009 (SR 2009/257).

214 Scope of rules made under section 213
  • Without limiting section 213(2), rules made in accordance with that subsection under the District Courts Act 1947 may—

    • (a) prescribe the procedure for serving a removal order, notice, and other documents for the purposes of sections 215 to 221 and Schedule 14 (including, without limitation, the circumstances in which service may be effected by leaving a copy of the order, notice, or document at the property to which the order relates):

    • (b) provide for substituted service, and for service to be dispensed with, in the circumstances that are specified in the rules:

    • (c) prescribe the circumstances and, if applicable, the manner in which persons entitled to object to a removal order may be served with a copy of notices of objection or other notices or documents in the proceedings:

    • (d) provide that Registrars may exercise specified powers of the court or a Judge:

    • (e) provide that proceedings may be stayed or dismissed, that an objection may be struck out, or that a party may not appear at the hearing of an objection to a removal order (whether not at all or only on the terms that the court considers appropriate)—

      • (i) if certain specified requirements of the rules are not complied with; or

      • (ii) unless certain specified requirements of the rules are complied with; or

      • (iii) if an order made under the rules is not complied with; or

      • (iv) unless an order made under the rules is complied with:

    Compare: 1974 No 66 s 692ZN(2)

    Section 214(g): amended, on 1 November 2009, pursuant to rule 17.1 of the District Courts Rules 2009 (SR 2009/257).

Application for removal order

215 Application for removal order
  • (1) A territorial authority or constable may, without notice, apply to a District Court in the form prescribed in Part 8 of the District Courts Rules 2009 for a removal order requiring an owner or occupier of any property to remove or alter a fence, structure (whether or not forming part of a dwellinghouse or other building), or vegetation.

    (2) Schedule 14 applies to applications made under this section.

    Compare: 1974 No 66 s 692ZD(1)

    Section 215(1): amended, on 1 November 2009, pursuant to rule 17.1 of the District Courts Rules 2009 (SR 2009/257).

    Section 215(1): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

Making of removal orders

216 Circumstances when court may make removal order
  • The District Court may make a removal order if—

    • (a) the court is satisfied that the property is occupied, or regularly used, by persons who have been convicted of, or have committed, are committing, or are likely to commit, offences; and

    • (b) the fence, structure, or vegetation—

      • (i) has facilitated or contributed to, is facilitating or contributing to, or is intended to facilitate or contribute to—

        • (A) the concealment on the property of an unauthorised weapon, controlled drug, tainted property, or property that is stolen or obtained by a crime involving dishonesty; or

        • (B) the avoidance of detection or arrest of a person believed or reasonably suspected to have committed an offence; or

        • (C) the commission of an offence by a person on or from the property; or

      • (ii) is intended to injure a person; or

      • (iii) is such that the court is satisfied that it may reasonably be regarded as intimidating.

    Compare: 1974 No 66 s 692ZD(2)

    Section 216(b)(ii): amended, on 1 December 2009, by section 4 of the Local Government Amendment Act 2009 (2009 No 48).

    Section 216(b)(iii): added, on 1 December 2009, by section 4 of the Local Government Amendment Act 2009 (2009 No 48).

Objection to making of removal order

217 Right of objection
  • (1) If the court makes a removal order under section 216, the persons listed in clause 3(a) of Schedule 14 may object to the order being made.

    (2) A notice of objection lodged under subsection (1) operates as a stay of the removal order, pending the court's decision on the objection.

    Compare: 1974 No 66 s 692ZG(1), (6)

218 Consideration of objections
  • (1) After considering any objection made under section 217(1) to a removal order, the court may—

    • (a) confirm the order; or

    • (b) confirm the order but vary all or any of its terms; or

    • (c) discharge the order.

    (2) Without limiting the powers of the court, the court may strike out an objection made under section 217(1) if it is satisfied that the objection is frivolous or vexatious or an abuse of the procedure of the court.

    Compare: 1974 No 66 ss 692ZH, 692ZI(1)

Right of appeal

219 Appeal to High Court final
  • If a party to proceedings under this subpart appeals to the High Court under Part 5 of the District Courts Act 1947, the decision of the High Court on that appeal is final.

    Compare: 1974 No 66 s 692ZJ

Compliance with removal order

220 Compliance with removal order
  • (1) If no notice of objection to a removal order is lodged under section 217(1), or if the court confirms an order under section 218(1) with or without variation, the respondent must—

    • (a) comply with a removal order within the period specified in the order; and

    • (b) unless the order directs otherwise, pay all the costs and expenses of complying with the order.

    (2) If the respondent fails to comply with a removal order, the applicant, without further notice, and using the force that is reasonable in the circumstances, may—

    • (a) enter the place where the fence, structure, or vegetation is situated and any portion of the adjoining land if reasonably necessary and authorised by the court in the removal order; and

    • (b) remove or alter the fence, structure, or vegetation, or arrange for its removal or alteration in accordance with the terms of the removal order; and

    • (c) sell or otherwise dispose of structures or materials salvaged in complying with the order; and

    • (d) after allowing for any money received under paragraph (c), recover the costs and expenses incurred in carrying out the terms of the removal order as a debt from the respondent.

    (3) Costs or expenses that remain unpaid under subsection (2)(d) may be registered under the Statutory Land Charges Registration Act 1928 as a charge on a property in respect of which a removal order is made.

    (4) Section 40 of the Building Act 2004 does not apply to the removal or alteration of a fence, structure, or vegetation in accordance with this section.

    Compare: 1974 No 66 s 692ZK(1), (2), (3), (6)

    Section 220(4): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

221 Limits to power of entry to enforce compliance
  • (1) If a respondent fails to comply with a removal order, and the applicant enforces compliance under section 220(2), the power conferred by that subsection to enter a place for that purpose is subject to the following conditions:

    • (a) entry upon the property must be made only by—

      • (i) a constable; or

      • (ii) if the order was made on the application of a territorial authority, an officer of that authority or a constable or both; and

      • (iii) any other person, whether a contractor, agent, or otherwise, authorised in writing by the constable or the territorial authority, as the case may be, and who is necessary to effect the alterations to, or removal of, the fence, structure, or vegetation, as required by the order; or

    • (b) entry must be made at reasonable times; and

    • (c) a person entering the property must carry evidence of his or her identity and authority to enter, and must produce that evidence to the owner or occupier, if present, on initial entry and subsequently if required to do so; and

    • (d) as soon as practicable after entry is made, the applicant must give notice in writing, in the prescribed form and manner, to the owner and to the occupier of the property of the entry and the reasons for it.

    (2) Compensation or damages must not be awarded in civil proceedings brought against a person referred to in subsection (1)(a) for any act done in good faith by that person under section 220(2).

    Compare: 1974 No 66 s 692ZK(3)–(5)

    Section 221(1)(a)(i): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 221(1)(a)(ii): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

    Section 221(1)(a)(iii): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

Application of certain other Acts

222 Provisions of Resource Management Act 1991 and Building Act 2004 continue to apply
  • Except as otherwise provided in this subpart or in Schedule 14, sections 215 to 221 and Schedule 14 apply in addition to, and not in derogation of, the provisions relating to the removal or alteration of fences, structures, or vegetation under this Act, the Resource Management Act 1991, and the Building Act 2004.

    Compare: 1974 No 66 s 692ZD(8)

    Section 222 heading: amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 222: amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

223 Relationship with Fencing Act 1978
  • (1) If a fence, within the meaning of section 2 of the Fencing Act 1978, or vegetation or a structure that is, or forms part of, a fence, is altered in accordance with a removal order made under this subpart, it is presumed, unless a court orders otherwise under the Fencing Act 1978, to be an adequate fence within the meaning of that Act in respect of the part of the boundary of the property that it covers until the expiry of the period described in subsection (4).

    (2) Until the expiry of the period described in subsection (4), if a fence, structure, or vegetation is removed under a removal order made under this subpart, the Fencing Act 1978 applies in respect of any boundary on the property affected by the removal as if section 9 of that Act required the occupier of the property in respect of which the order was made to pay the total cost of work on a fence.

    (3) For the purposes of subsection (2), occupier has the meaning given to it by section 2 of the Fencing Act 1978.

    (4) The period referred to in subsections (1) and (2) is the shorter period of—

    • (a) 3 years from the date of the removal order; or

    • (b) the period from the date of the removal order until the date on which the respondent ceases to occupy or, if the respondent was the owner of the property, ceases to own the property in respect of which the order was made.

    (5) For the purposes of subsection (4), the date of the removal order is the date on which the order was made under section 216 or, if an objection was made under section 217(1), the date on which the order was confirmed or varied under section 218(1).

    Compare: 1974 No 66 s 692ZM

Part 9
Offences, penalties, infringement offences, and legal proceedings

Subpart 1Offences

Offences relating to water

224 Offence relating to water wastage
  • Every person who contravenes section 192 and continues to waste water or allow it to be wasted after receiving a written warning from the local authority commits an offence and is liable on conviction to the penalty set out in section 242(2).

    Compare: 1974 No 66 s 382

    Section 224: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

225 Offences relating to waterworks
  • (1) Every person commits an offence and is liable on conviction to the penalty set out in section 242(1) who, wilfully or negligently,—

    • (a) takes water from the supply provided to another person without having entered into an agreement to be supplied with water from a waterworks; or

    • (b) having been supplied with water from a waterworks,—

      • (i) supplies that water to another person who has not entered into an agreement to be supplied; or

      • (ii) permits that other person to take water supplied from a waterworks; or

    • (c) bathes or washes clothing or other things in, or throws an animal, refuse, litter, or debris into, the water of a waterworks; or

    • (d) carries out work on, or in relation to, a waterworks without first—

      • (i) notifying the local authority of the intention to carry out the work; and

      • (ii) obtaining written authorisation from the local authority, with terms or conditions the local authority thinks fit.

    • (e) [Repealed]

    (2) It is not an offence under subsection (1) if the work referred to in subsection (1)(d) or (e)—

    • (b) was carried out in accordance with a valid building, plumbing, or drainage consent.

    (3) It is a defence to an offence under subsection (1)(d) or (e) if the work—

    • (a) was necessary to avoid an emergency, or to mitigate or remedy the effects of an emergency; and

    • (b) was carried out by a person appropriately registered to undertake the work.

    Section 225 heading: amended, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

    Section 225(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 225(1)(d)(ii): amended, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

    Section 225(1)(e): repealed, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

    Section 225(2): amended, on 20 September 2007, by section 6(3) of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).

    Section 225(2)(a)(i): amended, on 31 March 2005, by section 414 of the Building Act 2004 (2004 No 72).

    Section 225(3): amended, on 20 September 2007, by section 6(3) of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).

226 Liability for cost of damage
  • A person who commits an offence under section 225 may, in addition to, or instead of, the penalty for the offence, be ordered to pay the cost incurred by the council in repairing the damage done to the waterworks by the offence.

    Compare: 1974 No 66 s 395

    Section 226: amended, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).

Offences relating to water meters

227 Offences relating to water meters
  • Every person commits an offence and is liable on conviction to the penalty set out in section 242(1) who, without the prior written authorisation of the local authority,—

    • (a) alters the index of, or in any other manner tampers with, a water meter being used in association with the water services of a local government organisation; or

    • (b) alters the position of such a water meter.

    Compare: 1974 No 66 s 396

    Section 227: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Offences relating to water races and private drains

228 Offences relating to water races
  • Every person commits an offence and is liable on conviction to the penalty specified in section 242(1) who—

    • (a) commits a nuisance in or near a water race; or

    • (b) without being authorised to be supplied with water from a water race, takes water from the supply provided to another person; or

    • (c) is supplied with water from a water race and—

      • (i) supplies that water to another person who is not authorised to be supplied with water from a water race; or

      • (ii) permits another person who is not authorised to be supplied with water from a water race to take water from the water race; or

    • (d) bathes or washes clothing or other things in, or throws an animal, refuse, litter, or debris into, a water race; or

    • (e) takes machinery through or across a water race, except at an appointed crossing place; or

    • (f) obstructs by any means the flow of water in a water race; or

    • (g) permits vegetation or other matter to grow or spread from land that person occupies—

      • (i) into, on, or over a water race; or

      • (ii) into, on, or over land reserved or used for a water race; or

      • (iii) into, on, or over land where the vegetation or other matter is likely to obstruct the flow of water in a water race; or

    • (h) directly or indirectly pollutes or causes to be polluted the water in a water race or in a watercourse used for supplying water to a water race in a manner that—

      • (i) is offensive; or

      • (ii) makes the water a danger to human health; or

    • (i) allows livestock that the person owns or controls to trespass on to—

      • (i) a water race; or

      • (ii) a watercourse used for supplying water to a water race; or

    • (j) carries out work on, or in relation to, a water race or structure, apparatus, or other thing—

      • (i) connected with a water race; or

      • (ii) used in supplying water to, or to distribute water from, a water race, without first—

        • (A) notifying the local authority of the intention to carry out the work; and

        • (B) obtaining written authorisation from the local authority, with terms or conditions the local authority thinks fit.

    Compare: 1974 No 66 ss 436, 437, 438

    Section 228: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 228(b): substituted, on 7 July 2004, by section 20 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 228(c): substituted, on 7 July 2004, by section 20 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Offence relating to obstruction of enforcement officers and others

229 Obstruction of enforcement officers or agents of local authority
  • Every person commits an offence and is liable on conviction to the penalty specified in section 242(2) who intentionally—

    • (a) prevents the following persons from carrying out their statutory functions or duties:

      • (i) an enforcement officer; or

      • (iii) a person authorised or employed to carry out the provisions of this Act; or

    • (b) obstructs or impedes a person—

      • (i) from carrying out the provisions of this Act; or

      • (ii) from exercising or attempting to exercise a power of entry conferred by this Act; or

    • (c) refuses to give information when directed to do so by an enforcement officer under section 178, or knowingly misstates information; or

    • (d) incites any other person to do any act referred to in paragraph (a) or paragraph (b) or paragraph (c).

    Compare: 1974 No 66 s 693(1)

    Section 229: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 229(a)(iii): amended, on 27 November 2010, by section 36 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).

Offences by occupiers or owners

230 Offences by occupiers
  • (1) Every occupier of premises commits an offence and is liable on conviction to the penalty specified in section 242(2) who—

    • (a) refuses or wilfully omits to disclose or wilfully misstates the name or address of the owner of the premises when requested to do so by an officer of the local authority or by a person acting under the authority of the local authority for the purpose of giving effect to the provisions of this Act or of any other enactment in relation to the premises; or

    • (b) refuses or neglects to allow the owner of the premises to give effect to the provisions of this Act or of any other enactment in respect of the premises.

    (2) The owner is not liable to a fine for a default for which he or she might otherwise be liable if he or she proves that the default was due to the refusal or neglect of the occupier.

    Compare: 1974 No 66 s 671

    Section 230(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

231 Offences in relation to notices sent to occupiers or owners
  • Every person who fails to comply with a notice referred to in section 184(1) commits an offence and is liable on conviction to the penalty set out in section 242(2).

    Section 231: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Offences relating to property damage

232 Damage to local authority works or property
  • (1) This section applies in relation to the following works or property that are vested in, or under the control of, the local authority:

    • (a) a protective work; or

    • (b) a waterwork; or

    • (c) a water race; or

    • (d) a drainage work; or

    • (e) anything forming part of, or connected with, any works or property not referred to in paragraphs (a) to (d).

    (2) Every person commits an offence who wilfully or maliciously destroys, damages, stops, obstructs, or interferes with the works or property referred to in subsection (1) and is liable on conviction to the penalty set out in section 242(3).

    (3) Every person commits an offence who negligently destroys, damages, stops, obstructs, or interferes with the works or property referred to in subsection (1) and is liable on conviction to the penalty set out in section 242(1).

    Compare: 1974 No 66 s 694

    Section 232(1)(d): substituted, on 28 June 2006, by section 24 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 232(1)(e): added, on 28 June 2006, by section 24 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

    Section 232(2): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 232(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Miscellaneous offences

233 Offence relating to advertising
  • Every person who wilfully contravenes clause 58 of Schedule 3 (which relates to the authorisation of advertising) commits an offence and is liable on conviction to the penalty specified in section 242(2).

    Compare: 1974 No 66 s 37ZZZIF(2)

    Section 233: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

234 Unauthorised use of coat of arms
  • Every person commits an offence and is liable on conviction to the penalty specified in section 242(2) who, without prior written authority of the relevant local authority,—

    • (a) for the purposes of sale, applies or permits to be applied to an article the coat of arms of the local authority or an imitation of that coat of arms; or

    • (b) sells or offers the article for sale, or permits it to be sold or offered for sale, knowing that the coat of arms or an imitation of it has been applied to the article.

    Compare: 1974 No 66 s 696

    Section 234: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Offences committed by members and officers of local authorities

235 Offences by members of local authorities and local boards
  • (1) Every person who contravenes clause 1(3), clause 2(6), or clause 14(1) of Schedule 7 commits an offence and is liable on conviction to the penalty set out in section 242(2).

    (2) Fines recovered by the Secretary in proceedings instituted under clause 1(3), clause 2(6), or clause 14(1) of Schedule 7 must be paid into a Crown Bank Account.

    (3) Despite subsection (1), a person does not commit an offence if the person contravenes clause 1(3) of Schedule 7 while detained in a hospital under the Mental Health (Compulsory Assessment Treatment) Act 1992.

    Compare: 1974 No 66 ss 101X(3), 101Y(6), 101Z(2), 114U(3)

    Section 235 heading: amended, on 8 August 2014, by section 64 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

    Section 235(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 235(2): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).

236 Penalty for acting without warrant
  • Every person commits an offence and is liable on conviction to the penalty set out in section 242(2) who—

    • (a) does not have a warrant of the kind referred to in section 174, but represents himself or herself to be the holder of a warrant under that section; or

    • (b) acts under a warrant after the termination, as the case may be, of—

      • (i) his or her appointment as an officer of the local authority; or

      • (ii) his or her authority to act on behalf of the local authority.

    Compare: 1974 No 66 s 711

    Section 236: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Offences committed by members and officers of Remuneration Authority

237 Offence by member or officer of Remuneration Authority
  • Every person who wilfully contravenes clause 11(2) of Schedule 7—

    • (a) commits an offence; and

    • (b) is liable on conviction to the penalty set out in section 242(2).

    Section 237(b): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Offences against Act

238 Offence of failing to comply with Act
  • (1) Every person who acts contrary to, or fails to comply with, a direction or prohibition given under this Act, or under an authority given to a local authority or to a member or officer of a local authority, commits an offence and is liable on conviction to the penalty specified in section 242(2).

    (2) An offence or penalty prescribed by this Act, or by regulations or bylaws made under this Act, must not be treated as repealing or otherwise affecting the provisions of any other Act under which the same act or default is also prescribed as an offence or for which a penalty is prescribed.

    (3) A person to whom subsections (1) and (2) apply may be proceeded against—

    • (a) under this Act, or the bylaw or regulation made under this Act; or

    • (b) under any other Act; but

    • (c) must not be punished both under this Act, or under any bylaw or regulation made under this Act, and also under any other Act in respect of the same act or failure.

    (4) In this section direction includes a request by a constable under section 169(2)(d).

    Compare: 1974 No 66 s 697

    Section 238(1): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

    Section 238(4): added, on 7 July 2004, by section 21 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

    Section 238(4): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

Offences against bylaws

239 Offences in respect of breaches of bylaws (other than alcohol bans)
  • Every person commits an offence and is liable on conviction to the penalty set out in section 242(4) or (5) (as the case may be), who breaches a bylaw made under Part 8 (other than a bylaw made under section 147).

    Section 239: replaced, on 18 December 2013, by section 6 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

239A Breaches of alcohol bans
  • (1) Section 21 of the Summary Proceedings Act 1957 applies to a breach of a bylaw made under section 147 as if—

    • (a) the breach were an infringement offence within the meaning of that Act; and

    • (b) the person who has committed the breach has committed the offence; and

    • (c) the references in subsection (9) of that section to a defendant's being found guilty of, or pleading guilty to, an infringement offence for which an infringement notice has been issued were references to the person's being found to have committed, or admitting to having committed, the breach;—

    and Part 3 and section 208 of that Act apply accordingly.

    (2) Proceedings in respect of a breach of a bylaw made under section 147 cannot be commenced by filing a charging document under section 14 of the Criminal Procedure Act 2011.

    (3) Subsection (2) overrides subsection (1) and section 21(1)(a) of the Summary Proceedings Act 1957.

    Section 239A: inserted, on 18 December 2013, by section 6 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

Defences

240 Defence to offences under this Act
  • It is a defence to any offence under this Act or under bylaws made under this Act if the court is satisfied—

    • (a) that—

      • (i) the act giving rise to the offence was necessary—

        • (A) to save or protect life or health or prevent injury; or

        • (B) to prevent serious damage to property; or

        • (C) to avoid actual or likely damage to the environment; and

      • (ii) the conduct of the defendant was reasonable in the circumstances; and

      • (iii) the effects of the act or omission were adequately remedied or mitigated by the defendant after the offence occurred; or

    • (b) the act or omission giving rise to the offence was due to an action or event beyond the control of the defendant, and, in each case,—

      • (i) the action or event could not reasonably have been foreseen or prevented by the defendant; and

      • (ii) the effects of the act or omission of the defendant were adequately remedied or mitigated by the defendant after the offence occurred.

Time for filing charging document

  • Heading: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

241 Time for filing charging document
  • Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, a local authority may file a charging document in respect of an offence against this Act within 6 months after the time when the matter giving rise to the charge first became known, or should have become known, to the local authority.

    Section 241: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

Subpart 2Penalties

242 Penalties for offences
  • (1) A person who is convicted of an offence under section 225, section 227, section 228, or section 232(3), is liable to a fine not exceeding $20,000.

    (2) A person who is convicted of an offence under section 224, sections 229 to 231, or sections 233 to 238 is liable to a fine not exceeding $5,000.

    (3) A person who is convicted of an offence under section 232(2) is liable to imprisonment for a term not exceeding 3 years or to a fine not exceeding $20,000 or both.

    (4) A person who is convicted of an offence against a bylaw made under Part 8 (other than a bylaw made under Part 8 referred to in subsection (5)) is liable to a fine not exceeding $20,000.

    (5) A person who is convicted of an offence against a bylaw made under section 146(a)(iii) (which relates to trade wastes) is liable to a fine not exceeding $200,000.

    Compare: 1974 No 66 ss 683(1), 698

    Section 242(1): amended, on 20 September 2007, by section 8(1) of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).

    Section 242(3): amended, on 20 September 2007, by section 8(2) of the Local Government Act 2002 Amendment Act 2007 (2007 No 69).

Subpart 3Infringement offences

243 Interpretation
  • (1) In this subpart,—

    alcohol ban means a bylaw made under section 147

    enforcement officer, in relation to an alcohol ban, means a constable

    infringement fee,—

    • (a) in relation to an infringement offence specified as such by regulations under section 259(a), means the amount prescribed by regulations under section 259(b) as the infringement fee for the offence; and

    • (b) in relation to a breach of an alcohol ban, means the amount prescribed by regulations under section 259(b) as the infringement fee for the breach

    infringement offence

    • (a) means an offence specified as such by regulations under section 259(a); and

    • (b) includes a breach of an alcohol ban.

    (2) The definition in subsection (1) of enforcement officer overrides the definition of that term in section 5.

    Section 243: replaced, on 18 December 2013, by section 7 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

244 Proceedings for infringement offences
  • (1) A person who is alleged to have committed an infringement offence specified as such by regulations under section 259(a) may either—

    • (b) be served with an infringement notice under section 245.

    (2) A person who is alleged to have committed a breach of an alcohol ban—

    • (a) may be served with an infringement notice under section 245; and

    Section 244: replaced, on 18 December 2013, by section 7 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

245 Issue of infringement notices
  • (1) An infringement notice may be served on a person if an enforcement officer—

    • (a) observes a person committing an infringement offence; or

    • (b) has reasonable cause to believe that an infringement offence is being or has been committed by that person.

    (2) An infringement notice not relating to a breach of an alcohol ban may be served—

    • (a) by an enforcement officer (not necessarily the person who issued the notice) personally delivering it (or a copy of it) to the person alleged to have committed the infringement offence concerned; or

    • (b) by post addressed to that person's last known place of residence or business.

    (2A) An infringement notice relating to a breach of an alcohol ban may be served—

    • (a) by a constable personally delivering it to the person alleged to have committed the breach; or

    • (b) by a constable personally delivering it, at a time after the person alleged to have committed the breach has been arrested for committing it, to the person; or

    • (c) by post addressed to the last known place of residence or business of the person alleged to have committed the breach.

    (3) An infringement notice sent to a person under subsection (2)(b) must be treated as having been served on that person when it was posted.

    (4) An infringement notice must be in the prescribed form and must contain the following particulars:

    • (a) details of the alleged infringement offence sufficient to inform fairly a person of the time, place, and nature of the alleged offence:

    • (b) the amount of the infringement fee specified for that offence:

    • (c) the time within which the infringement fee must be paid:

    • (d) the address of the place at which the infringement fee must be paid:

    • (e) a summary of the provisions of section 21(10) of the Summary Proceedings Act 1957:

    • (f) a statement that the person served with the notice has a right to request a hearing:

    • (g) a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing:

    • (h) any other particulars that are prescribed.

    (5) If an infringement notice has been issued under this section,—

    • (a) proceedings in respect of the offence to which the notice relates may be commenced in accordance with section 21 of the Summary Proceedings Act 1957; and

    • (b) the provisions of that section apply with all necessary modifications.

    Compare: 1974 No 66 s 699C

    Section 245(2): replaced, on 18 December 2013, by section 8 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

    Section 245(2A): inserted, on 18 December 2013, by section 8 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

    Section 245(3): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).

245A Constables may require certain information
  • A constable who believes on reasonable grounds that a person is committing or has committed an infringement offence may direct the person to give the constable his or her name, address, and date of birth.

    Section 245A: inserted, on 18 December 2013, by section 9 of the Local Government (Alcohol Reform) Amendment Act 2012 (2012 No 121).

246 Entitlement to infringement fees
  • A local authority may retain the infringement fee received by it for an infringement offence if the infringement notice was issued by an enforcement officer appointed by that local authority.

    Compare: 1974 No 66 s 699D

Subpart 4Legal proceedings

Procedure

247 Proceedings in District Court
  • An application and appeal to the District Court under this Act must be made in accordance with the rules of the District Court.

    Compare: 1974 No 66 s 701(1)

Judges not disqualified

248 Judges not disqualified for being ratepayers
  • (1) In this section, Judge means a Judge of the High Court or District Court, a Justice, or a Community Magistrate.

    (2) A Judge must not be treated as interested in a case in which he or she is acting judicially solely on the ground that he or she is a ratepayer or is normally resident in a district or region.

    Compare: 1974 No 66 s 700

Representation

249 Representation of local authority in proceedings
  • (1) This section applies to proceedings involving a local authority—

    • (b) under any enactment in relation to bankrupts:

    • (c) in all proceedings—

      • (i) in a District Court; or

      • (ii) before any Justice or Community Magistrate.

    (2) In the proceedings referred to in subsection (1), the local authority may be represented by the following persons acting on behalf of the local authority:

    • (a) a member of the local authority appointed for the purpose by resolution of the local authority; or

    • (b) any officer of the local authority or other person appointed in writing by the mayor or chairperson of the local authority, as the case may be, or the chief executive of the local authority.

    (3) A member of the local authority, and any officer or other person acting on behalf of the local authority, must be reimbursed by the local authority for any damages, costs, charges, and expenses incurred by the member or person acting under subsection (2).

    Compare: 1974 No 66 s 701(2), (3)

Service

250 Service of legal proceedings on local authority
  • A document in legal proceedings that must be served on a local authority may be served by being left at the principal public office of the local authority or given personally to the mayor, chairperson, or chief executive of the local authority.

    Compare: 1974 No 66 s 702

Evidence

251 Evidence of ownership, vesting, or control
  • In legal proceedings commenced by, or on behalf of, a local authority to enforce a provision of this Act, or of a regulation or bylaw made under it,—

    • (a) the production of the rating information database (within the meaning of the Local Government (Rating) Act 2002) is evidence that a person entered as the ratepayer of any rating unit is the owner unless the contrary is proved; and

    • (b) an affidavit by the chief executive stating that specified works or property are vested in, or under the control of, the local authority is evidence of the matter unless the contrary is proved.

    Compare: 1974 No 66 ss 703, 704

Recovery of debts

252 Recovery of debts
  • Money payable by a person to the local authority for works, material, or things provided or done by the local authority, and money payable by a person to the local authority as a development contribution, is recoverable by the local authority as a debt.

    Compare: 1974 No 66 s 705

    Section 252: amended, on 8 August 2014, by section 65 of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).

Part 10
Powers of Minister to act in relation to local authorities

  • Part 10: replaced, on 5 December 2012, by section 31 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

253 Outline of Part
  • This Part confers powers on the Minister to—

    • (a) assist local authorities in certain situations; and